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Daily Commodities Outlook

Bullion Outlook

* Gold prices advanced on Wednesday amid a retreat in the US dollar and US treasury yields as investors anticipate slower rate hikes from the Federal Reserve at its policy meeting next week

* Further, China's central bank said on Wednesday that it had added 32 tonnes of gold worth around $1.8 billion to its reserves, the first time it has disclosed an increase since September 2019

* Gold prices are expected to trade with a positive bias for the day amid weakness in dollar and decline in US treasury yields. Meanwhile, investors will closely watch initial jobless claims data from the US, which is likely to show that more number of people filled for unemployment claims. MCX Gold prices are likely to continue their upward trend towards the level of 54,250

* Additionally, MCX silver prices are expected to take cues from gold prices and trade towards 67,000 level

Base Metal Outlook

* Copper prices rose on Wednesday amid drop in US dollar and hopes of further easing of Covid-19 restrictions in top metals consumer China

* However, sharp upside was capped as China's trade surplus declined to US$69.84 billion in November 2022 from US$71.7 billion in the same month the prior year, far below market forecasts of a surplus of US$78.1 billion. This was the smallest trade surplus since April due to weakening global and domestic demand

* Additionally, sharp rise in copper inventories at LME registered warehouses, weighed on prices

* Copper prices are expected to trade with a positive bias amid weakness in US dollar and as relaxation in Covid-19 curbs in China raised hopes of improved demand. China’s copper imports increased by 5.8% in November. MCX copper prices are likely to continue its upward trend towards 710 level

Energy Outlook

* Crude oil prices edged to their lowest since the start of the year, after US government data showed an unexpectedly large build in gasoline inventories, feeding fears about demand in a market already spooked by an uncertain economy

* According to EIA, US distillate stocks posted a build 6.2 million barrels and gasoline inventories climbed 5.3 million barrels

* However, further downside was restricted after data showed China's crude oil imports in November rose 12% from a year earlier to their highest in 10 months

* Oil prices are likely to trade with a negative bias for the day on concerns that economic slowdown would dent global crude oil demand. MCX crude oil prices may drop further till | 5,900 as long as they stay below | 6,150 level

Additionally, traders will focus on natural gas storage data, which is expected to drop by 84 bcf

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