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Bullion Outlook

• Gold prices edged lower on Thursday amid stronger than expected job data from the US. The number of Americans filing for unemployment benefits fell to 190,000 on the week ending February 25th, below market expectations of 195,000. The latest value remained close to the nine-month low of 183,000 hit at the end of January, giving further evidence that the US labor market remains tight in part to reduced labor force participation

• Gold likely to trade with a negative bias on the back of strong dollar and surge in US 10 year treasury yields. Further, investors will closely watch key economic data from the US like services PMI data, which is expected to show expansion in activity for second consecutive month. Additionally, data from Europe signalled that inflation remained sticky, with ECB leaning towards remaining hawkish. MCX gold is expected to continue trading in its downward trend towards the level of 55,550

• MCX silver prices edged lower by 0.80% yesterday and it is expected to continue its downward trend towards 63,600 level

Base Metal Outlook

• Copper prices dropped on Thursday amid strong dollar and on concerns that monitory policy tightening by major central banks may hamper global economic growth and decrease the base metals demand

• Additionally, prices slipped on media reports that there is a possibility that US may impose new sanctions on China if it provides military support to Russia for its war in Ukraine

• Meanwhile, further downside was cushioned on expectations that China may announce more stimulus at its National People’s Congress to revive economic growth

• Copper is expected to trade with a negative bias for the day amid strong dollar. Further, robust economic data from US and Europe fueled the worries that central banks would have to continue raising rates longer. MCX copper is likely to break the key support level of 760 to continue its downward trend towards the level of 755 for the day

Energy Outlook

• Natural gas prices tumbled on Thursday as forecast for less heating demand next week offset a bigger than expected weekly storage draw

• Crude oil prices edged up yesterday amid rise in risk appetite in the global markets and signs of a strong economic rebound in top crude oil importer China

• Meanwhile, further upside was prevented on strong dollar and on concerns that Western economies are poised for recession as their central banks are raising interest rates to bring inflation to heel

• Crude oil is expected to trade with a positive bias for the day on expectations of demand recovery in top crude oil importer China. MCX crude oil is expected to continue trading in upward trend towards the level of 6550

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