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Bullion Outlook

• MCX gold prices edged higher on Friday amid a flat US dollar and weak economic data from the US

• Further, bullion prices were supported by a drop in US 10 year’s treasury yields

• MCX gold prices are expected to trade with a positive bias for the day amid weakness in US dollar index. It is likely to break the hurdle of | 50,500 to touch the level of | 50,700 in coming session

• Additionally, silver prices are expected to take cues from gold prices and trade toward the level of | 54,000

MCX Gold vs Silver Performance

Base Metal Outlook

• MCX copper and aluminium prices ticked down to their lowest in more than a month on Friday as top metals consumer China extended Covid restrictions and concerns grew about a potential recession

• Further, concerns over a global economic slowdown pressurised metal prices

• We expect copper prices to trade with a negative bias for the day on concerns over weak manufacturing activity from the top metal consumer China

MCX Copper vs. Aluminium Performance

Energy Outlook

• MCX crude oil rose on Friday on expectations that Opec+ will discuss output cuts at a meeting on September 5, though concerns over China's Covid-19 curbs and weakness in the global economy loomed over the market

• Meanwhile, US energy firms this week cut the number of oil and natural gas rigs operating for the fourth time in five weeks. The US oil and gas rig count, an early indicator of future output, fell by five to 760 in the week

• We expect MCX crude oil prices to trade with a negative bias for the day as money managers cut their net long US crude futures and options positions by 10,607 contracts to 168,431

MCX Crude Oil vs. Natural Gas Performance

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