We expect MCX crude oil prices to trade with a negative bias for the day - ICICI Direct
Daily Commodity Outlook
Bullion Outlook
• Comex gold prices tumbled yesterday and touched two-and-ahalf year low levels after the Federal Reserve Chairman Jerome Powell signalled the central bank was not finished raising interest rates
• However, weaker than expected macroeconomic data from the US prevented further downside
• MCX gold prices are expected to trade with a negative bias for the day amid rise in US dollar. It is likely to break the key support level of | 50,060 and continue its downward trend towards the level of | 49,800 in the coming trading session
Base Metal Outlook
• MCX copper prices slumped on Thursday after the US Federal Reserve failed to provide a clear signal for less aggressive rate hikes as a global slowdown curbs demand for base metals
• Further, weaker than expected macroeconomic data from the China pressurised copper prices. The Caixin China general services PMI deteriorated further to 48.4 in October 2022 from 49.3 in September, contracting for a second straight month and logging the lowest reading since May
• We expect MCX copper prices to trade with a negative bias for the day amid a continuous rise in Covid-19 cases in top metals consumer China, which may hamper demand for base metals
Energy Outlook
• MCX natural gas prices tumbled by about 2.60% yesterday amid rise in US natural gas inventories from 3,394 bcf to 3,501 bcf
• MCX crude oil prices slipped almost 1.30% as China stood by its zero-Covid policy and an increase in US interest rates pushed up the dollar
• We expect MCX crude oil prices to trade with a negative bias for the day amid rising fears of a global recession that would crimp fuel demand
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