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Below is Daily Commodity Article by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One Ltd

Gold extends gains, Oil settles lower on demand worries

GOLD

Gold prices on Tuesday were marginally up, maintaining the positive streak and building on the gains for the week.

Gold prices are waiting for more clues from the US Fed meeting next week, which will set the tone for the next few days.

Following ten consecutive rate increases, the market currently expects the US Fed to retain interest rates at 79%.

Outlook: We expect gold to trade higher towards 60250 levels, a break of which could prompt the price to move higher to 60370 levels.

CRUDE

On Tuesday, crude prices slipped, ending on a lower note after a series of positive runs. Both the benchmark indices Brent and NYMEX ended with cut of 1.21 percent and 0.57 percent respectively.

Prices are falling as a result of demand concerns caused by slow global economic growth.

Both benchmarks fell nearly 1% on Tuesday, reversing some of Monday's gains, which were fueled by Saudi Arabia's surprising commitment over the weekend to cut output by 1 million barrels per day (bpd) to 9 million bpd in July.

The voluntary cut by Saudi Arabia is the largest in years, and it comes on top of a broader agreement by OPEC+ to reduce supplies through 2024 in order to bolster oil prices.

Outlook: We expect crude to trade higher towards 6070 levels, a break of which could prompt the price to move higher to 6170 levels.

BASE METALS

The base metals pack overall had a positive day on Tuesday, however Aluminium concluded the day on a lower note.

Copper prices managed to hang onto their small gains on Tuesday, as the US service sector and factory activity reports kept economic concerns at the forefront.

The US services sector barely increased in May as new orders slowed.

Copper prices momentarily reached their highest level in over four weeks in Shanghai, on optimism that China will unveil additional economic stimulus measures that will boost metals demand.

Outlook: We expect copper to trade higher towards 726 levels, a break of which could prompt the price to move higher to 728 levels.

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