MCX gold prices tumbled almost 1.00% on Friday amid a rise in the US dollar index - ICICI Direct
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Daily Commodity Outlook
Bullion Outlook
* MCX gold prices tumbled almost 1.00% on Friday amid a rise in the US dollar index and US 10 year’s treasury yields
* Further, stronger than expected Michigan consumer sentiment data from the US pressurised 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 | 50,070 to continue trading in a downward trend towards the level of | 49,880 in coming trading sessions
* Additionally, US Chicago PMI is expected to rise from 45.7 to 47.1, which may pressurise bullion prices
Base Metal Outlook
* Comex copper and aluminium prices dropped on Friday as bullish investors shed long positions while the dollar strengthened and top metals consumer China reported more Coronavirus cases and renewed lockdowns
* Furthermore, a drop in US pending home sales data pressurised copper and aluminium prices. Pending home sales in the US slumped by 10.2% MoM in September of 2022, the third consecutive decline and the steepest since April 2020
* We expect MCX copper prices to trade with a negative bias for the day amid renewed lockdowns in top metal consumer China on account of rising Covid-19 infection
Energy Outlook
* MCX crude oil prices edged lower by almost 1.80% on Friday after top crude importer China widened its Covid-19 curbs
* However, a drop in US Baker Hughes oil rig counts and concerns ahead of a looming European ban on Russian crude imports prevented further downside in crude oil prices
* We expect MCX crude oil prices to trade with a negative bias for the day as International Monetary Fund expects China's growth to slow to 3.2% this year, a downgrade of 1.2 points from its April projection, which may dent demand for crude oil
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