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Daily Commodity Outlook

Bullion Outlook

• MCX gold prices remained volatile and dropped by 0.56% yesterday amid a sharp rise in the US dollar and US 10 year’s treasury yields

• However, rising worries over a global recession prevented further downside in bullion prices

• MCX gold prices are expected to trade with a negative bias for the day amid strong US dollar index. It is likely to break the key support level of | 48,960 to continue its downward trend towards the level of | 48,900 in the coming trading sessions

• Additionally, investors will stay vigilant ahead of CB consumer confidence data from the US

Base Metal Outlook

• MCX industrial metals prices dropped yesterday on fears of a global growth slowdown and weaker demand

• Further, a sharp rise in copper LME warehouse inventories pressurised copper prices

• We expect copper prices to trade with a negative bias for the day amid a continuous rise in copper LME warehouse inventories. It is likely to trade towards the key support level of | 617 in coming trading session

• Additionally, investors will focus on new home sales data from the US

Energy Outlook

• MCX crude oil prices tumbled by 1.40% on Monday, settling at nine-month lows in choppy trade, by a strengthening dollar as market participants awaited details on new sanctions on Russia

• Further, crude oil prices were pressurised after data showed funds have sold a total of 186 million barrels over the 16 weeks since the start of June, according to records published by ICE Futures Europe and the US Commodity Futures Trading Commission

• We expect MCX crude oil prices to trade with a negative bias for the day on expectations that an imminent recession will hit fuel consumption

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