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GOLD

After ending on a higher note in the previous session, the yellow metal continued its downward trajectory, as it concluded with a 0.40 cut, ending at 1665.8$ per ounce.

The US CPI rose to 0.4% last month after gaining 0.1% in August however, the annual inflation rate in the US slowed for the third month running to 8.2% in September of 2022, the lowest in seven months, compared to 8.3% in August

The data signals the Fed will be more aggressive in fighting inflation by raising interest rates at a faster pace, pressuring gold.

Following the data, benchmark US 10-year Treasury yields climbed. Higher interest rates and bond yields lower the appeal of non-yielding gold.

Outlook: We expect gold to trade lower towards 50390 levels, a break of which could prompt the price to move lower to 50040 levels.

CRUDE

Crude prices on Thursday snapped the recent weakness, as Brent and NYMEX, both ended on a positive note. The benchmark Brent gained a marginal 0.22 percent, whereas NYMEX gained 2.11 percent.

Post the OPEC's output reduction in the last week, the two oil production major countries, the US and Saudi Arabia continue to clash over the decision of the OPEC+.

However, the upside remained capped given the larger-than-expected surge in the US crude oil storage, which maintained pressure on the crude prices.

Outlook: Covid-19 flare-ups in China and an increase in the US oil inventory might keep the crude prices under pressure.

BASE METALS

The base metals pack witnessed a mixed trading session, as all the metals on the LME ended on a positive note, except for Zinc. However, on the MCX, except for copper and aluminum, the rest all the metals ended lower.

Aluminum prices rose for a second straight day on Thursday after reports suggested that the United States could ban imports from Russia, a major producer. The threat comes as the London Metal Exchange considers blocking Russian metal from its trading system.

Russia produces around 6% of the world's aluminum. However, prices of the metal used in packaging, construction, and transport remain down around 16% this year.

Outlook: New covid cases are being reported in the major metals consumer China along with fears of recession with will hamper the demand for metals, eventually limiting the upside.

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