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Daily Commodities Outlook

Bullion Outlook

• Gold prices rose yesterday amid weakness in dollar and decline in US treasury yields. Further, gold prices rallied as FOMC meeting minutes showed that most of the officials favoured slowing pace of interest rate hike. Policymakers were even worried over the risk of rapid policy tightening on economic growth and financial stability

• Additionally, US business activity contracted for 5 th consecutive month with a measure of new orders declining to its lowest level in 2 ½ years

• Gold prices are expected to trade with a positive bias for the day amid soft dollar and decline in US treasury yields. Further, demand for safe haven may rise as investors are worried that global economy is deteriorating. Business survey’s pointed decline in output across major countries in globe. MCX Gold is likely to break the key resistance level of ? 52,500 to continue its upward trend towards the level of  52,650

Base Metal Outlook

• MCX copper prices advanced yesterday amid drop in LME warehouse inventories and weakness in US dollar index

• However, sharp upside was capped as business survey’s pointed to declines in output across US and Europe’s largest economies

• Additionally, rising COVID-19 cases in China tempered hopes that demand in the world's biggest metals consumer will soon improve

• MCX Copper prices are expected to trade with a negative bias for the day as investors are worried that global economy is deteriorating. Additionally, in China the outlook is highly uncertain as the country faces surge in COVID-19 cases. However, sharp downside may be cushioned on weakness in dollar and rise in risk appetite in the global markets. MCX Copper (Dec) is likely to break the key support level of 671 to trade in downward trend and touch 668 level

Energy Outlook

• Natural gas prices edged higher more than 7.80% on Wednesday as EIA reported a withdrawal of 80 Bcf natural gas into storage for the week ended Nov 18th

• Crude oil prices tumbled almost 4.00% as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level and as gasoline inventories in the United States built by more than expected

• Meanwhile, further downside was cushioned on drop in US crude oil inventories from 435.4 million barrels to 431.7 million barrels

• Crude oil prices are expected to trade with a negative bias for the day as fears of supply disruption eased on news that group of seven (G7) nations were considering a high prices cap on Russian oil. It is likely to break the key support level of 6330 to continue its downward trend towards the level of 6200 in the coming trading session

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