IGI Logo

Bullion Outlook

* Gold prices edged up to their highest since early February on Wednesday as a fresh crisis in the banking sector turned investors away from seemingly riskier assets and drove them to the safety of bullion

* Further, bullion prices were supported as the retail sales in the US were down 0.4% MoM in February 2023, compared to market forecasts of a 0.3% fall

* Gold is likely to trade with a positive bias for the day as demand for safe haven may increase on fears of widening banking crisis. Additionally, US treasury yields across curve are declining on anticipation that US Fed may start cutting down rates sooner than projected. Moreover, US economic data showed signs of cooling economy. MCX gold is expected to continue its upward trend towards the level of 58,800

* MCX silver prices rose by more than 0.50% and it is expected to continue its upward trend towards the level of 68,000

Base Metal Outlook

* Copper prices dropped yesterday as a stronger dollar dented buying appetite from holders of other currencies while equities markets were shaken by fresh banking sector concerns

* Further, copper prices slipped on rise in copper inventories at LME registered warehouses

* Meanwhile, sharp downside was restricted as China's industrial production advanced 2.4% yoy in January-February 2023 combined, faster than a 1.3% gain in December 2022

* Copper is expected to trade with a negative bias for the day amid risk aversion in the global markets. Market sentiments are hurt as a fear of banking crisis are reignited on fresh troubles at Credit Suisse. MCX copper is likely to break the key support level of 750 to continue its downward trend towards the level of 745

Energy Outlook

* Crude oil prices continue to fall on Wednesday to their lowest in more than a year as unease over Credit Suisse spooked world markets and offset hopes of a Chinese oil demand recovery

* Further, oil prices slipped on rise in US crude oil inventories from 478.5 mb to 480.1 mb

* Crude oil is expected to trade with a negative bias for the day on concerns that turmoil in banking sector will spread. Additionally, International Energy Agency said world oil supply will exceed demand in first half of the year. Higher than expected Russia exports will keep market in surplus for the first half. Moreover, global oil inventories surged to 7.8 billion barrels highest level since September 2021 as demand growth remained subdued. MCX crude oil is likely to trade with a downward trend towards the level of 5440

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
SEBI Registration number INZ000183631

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