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

GOLD

After concluding the previous week on a positive note, gold prices had a mild start to the week, as prices ended at a marginally lower level.

Despite the pullback, prices are still above the $1900 mark, buoyed by hopes of slower interest rate hikes by the US Federal Reserve.

The US central bank raised rates by 50 bps in December, while it is expected that the Fed will deliver a 25-basis point rate hike increase at the next policy meeting.

Outlook: We expect gold to trade lower towards 56200 levels, a break of which could prompt the price to move lower to 56000 levels.

CRUDE OIL

Crude prices on Monday witnessed a quiet session, as US markets were closed for trading. However, the benchmark Brent came under pressure to end the day on a lower note.

The impact on crude prices resulted from recession worries that dominated following the World Economic Forum conference in Davos, stifling the market's euphoria last week over the possibility of a revival in demand in top oil importer China.

Oil prices were also negatively impacted by the dollar's recovery from its seven-month lows, since a stronger dollar increases the cost of oil for holders of other currencies.

Outlook: We expect crude to trade higher towards 6640 levels, a break of which could prompt the price to move higher to 6740 levels.

BASE METALS

The base metals pack on Monday witnessed a mixed session, as metals such as copper, lead, and zinc slipped lower, while only aluminum seemed to manage to end higher.

Meanwhile, it's believed that severe COVID regulations caused China's economy to significantly slowdown in the fourth quarter, making 2022's growth one of the weakest in nearly fifty years.

On Monday, as the dollar strengthened, the focus shifted back to weakening demand, particularly in major consumer China. Copper prices also came under pressure.

Outlook: We expect copper to trade lower towards 758 levels, a break of which could prompt the price to move lower to 748 levels.

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