IGI Logo

Bullion Outlook

* Comex gold prices traded flat on Thursday amid a rise in risk appetite in global markets and improved macroeconomic data from the US

* The number of Americans filing new claims for unemployment benefits eased to 210,000 from 218,000 for the week ended May 21, 2022

* However, worries over global economic outlook, weakness in dollar index and geopolitical uncertainty boosted demand for precious metal

* MCX gold prices are expected to correct further towards | 50,300 for the day on prospects of aggressive monetary tightening policy by the US. Silver prices are also expected to take cues from gold prices and may dip further towards | 61,200. Additionally, market participants will keep an eye on a series of macroeconomic data from the US

Base Metal Outlook

* MCX copper prices and other industrial metal prices declined on Wednesday amid a disappointing pending home sales data from the US

* As per a National Association of Realtors (NAR) report, pending home sales index dropped to 99.30 level in March 2022 compared to 103.70 levels in the previous month, the lowest level since April 2020 due to rising borrowing costs

* However, a sharp decline in LME copper inventories along with expectation of monetary policy support from Chinese central bank restricted further downsides in copper prices

* MCX copper prices are expected to slip towards | 760 for the day due to worries over lower industrial metal demand. Additionally, investors will remain cautious ahead of personal spending data from the US

Energy Outlook

* WTI crude oil prices rallied more than 3.50% on concerns about tight supply as impending European Union sanctions on Russian oil

* European Council President Charles Michel on Wednesday said he is confident that an agreement can be reached before the council's next meeting on May 30

* MCX natural gas prices surged almost 1.0% on Thursday after the EIA reported that utilities added 80 billion cubic feet (bcf) of gas over the last week, which was lower than expected natural gas injection into storage

* MCX natural gas prices are expected to trade with a positive bias for the day due to rising cooling demand from the US and lower levels of gas storage. It is trading above the resistance levels of | 700 levels over the last couple of trading sessions. As long as it sustains above this level, it is likely to head further towards | 740 in the coming trading sessions

To Read Complete Report & Disclaimer Click Here

https://secure.icicidirect.com/Content/StaticData/Disclaimer.html

Above views are of the author and not of the website kindly read disclaimer