Daily Commodities Outlook - March 31, 2021 - ICICI Direct

Bullion Outlook

- Gold prices opened sharply lower on Tuesday and recovered gradually during the first half of the session till a high of Rs. 44740. However, prices did not sustain at higher levels and fell gradually for the remaining session till a low of Rs. 44277

- Prices have been falling gradually in the last few sessions as the US dollar rose on the back of higher Treasury yields and as expectations that speedy vaccinations would improve the economic outlook curbed demand for safe-haven bullion

- Therefore, we expect gold prices to fall further towards Rs. 44000 level in the short-term

Energy Outlook

- Crude oil prices started Tuesday's trade on a flat note and fell gradually during most of the session till a low of Rs. 4421

- Prices remained in a sideways mode in the last two sessions. Also, with concerns about a shortage of physical supplies abating, the market is turning to Thursday's meeting of Opec and allies including Russia, collectively known as Opec+, to decide on production curbs

- Hence, we expect crude prices to consolidate in the range of Rs. 4400-4500 levels in the short term

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Source : Equity Bulls

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