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Daily Commodities Outlook

Bullion Outlook

• On Friday, gold prices ended on a negative note amid strong dollar and a surge in US treasury yields. Further, US Federal Reserve official’s hawkish statement’s added downside pressure. They indicated that more rate hikes are needed to combat soaring inflation

• Federal Reserve Bank of Boston leader Susan Collins said the Fed sees more rate hikes ahead of it as it seeks to lower inflation, adding that a 75 bps hike was still on the table

• Gold prices are expected to trade with a negative bias for the day on the back of a strong dollar and a rise in US treasury yields. MCX gold price is making lower-low and lower-high pattern. It is facing a strong resistance near ? 52,860 level. As long as it sustains below this level it may slip back to ? 52100

• MCX silver prices are expected to take cues from gold prices and decline further towards ? 60,000 level for the day

Base Metal Outlook

• Copper prices declined on Friday amid a strong dollar and concerns over weak global demand. Further, China, top metal consumer, is still struggling with rising Covid-19 cases including its big cities, fanning concerns about its economic performance

• Additionally, disappointing existing home sales data from the US added downside pressure. Existing home sales in US tumbled 5.9% to a seasonally adjusted annual rate of 4.43 million in October 2022

• Copper prices are expected to trade with a negative bias for the day on strong dollar and pessimistic global market sentiments. Additionally, a series of disappointing housing data from the US signalled the housing market is crumbling. MCX copper is facing strong resistance near ? 682. As long as it sustains below this level, it may slip back to ? 665 levels

Energy Outlook

• Crude oil prices fell more than 2.00% amid concern about weakened demand in China and further increases to US interest rates

• China is struggling with rising Covid-19 cases in major cities. To prevent a severe outbreak, the country has taken stringent steps causing severe economic damage

• Crude oil prices are expected to trade with a negative bias for the day amid a strong dollar and risk aversion in global markets. Further, prices may slip on easing of geopolitical tensions, mounting concerns over rising Coronavirus cases in China and new hawkish signals from Fed officials. However, further downside may be cushioned on fears over tight supply as Opec+ began a new round of supply cuts in November

• MCX crude oil is making a lower-low and lower-high pattern. It is facing strong resistance near ? 6660 level. As long as it sustains below this level it may slip further till ? 6400 levels

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