The yellow metal on Wednesday inched higher, continuing its positive momentum for yet another day, as it gained over 1 percent and concluded at 1768.5$ per ounce.
After U.S. Federal Reserve Chair Jerome Powell's speech reaffirmed expectations of lower interest rate hikes, the bullion witnessed gains and scaled two-week highs.
Lower interest rates tend to boost bullion's appeal as the it reduces the opportunity cost of holding the non-yielding asset, which ended November nearly 8% higher, its biggest monthly gain since July 2020.
Outlook: Gold prices might stay elevated on the back of slowing pace of interest rate hikes, however, increasing interest rates would limit the upside.
Post witnessing a recovery the previous day, crude prices continued the recovery for yet another day, as both the benchmark indices ended on a higher note. Brent ended with 2.52 percent gains and NYMEX ended 3.01 percent higher.
Signs of tighter supply, a weaker dollar and optimism over a Chinese demand recovery pushed the prices higher. US crude oil stocks plunged by nearly 13 million barrels, the most since 2019, in the week ended Nov. 25.
On the demand side, hope for a revival in demand in China, the largest consumer of oil, provided additional assistance. China reported fewer COVID-19 infections than on Tuesday, while the market speculated that weekend protests could prompt an easing in travel restrictions.
Outlook: Expectations of improving demand from China and falling crude stocks would likely propel crude prices higher.
The base metals pack ended on a higher note on Wednesday, as all the metals ended on a positive note, with LME Aluminium being the highest gainer.
On Wednesday, copper prices rose to their highest level in almost two weeks on the back of a weaker dollar and expectations that inflation has peaked and the tempo of central bank rate increases will reduce.
The metal, which is used in power and construction, reached a nearly five-month high earlier this month but fell back partly as a result of concerns that the growing COVID cases in top consumer China may slow down economic growth and, as a result, metals demand.
Outlook: Lower dollar and China demand optimism would underpin metals prices, however, an increasing dollar on the back of higher rate hikes would cap the upside.
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