Commodity Article : Gold ticks up in positive territory, while oil slips sharply on demand concerns Says Prathamesh Mallya, Angel One
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Below is Gold Article by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One Ltd
Gold ticks up in positive territory, while oil slips sharply on demand concerns.
GOLD
After a series of lower closes, gold prices on Tuesday managed to climb higher, gaining nearly 1 percent to end at $1959.1 per ounce.
Gold prices recovered from their lowest level in more than two months as the dollar retreated from recent highs, while persistent fears about the US debt ceiling negotiations kept investors on edge and revived demand for safe-haven metal.
Given the solid economic data, markets are now pricing in a 59.4% chance of the US Fed hiking rates at its June meeting.
Outlook: We expect gold to trade higher towards 60360 levels, a break of which could prompt the price to move higher to 60530 levels.
CRUDE OIL
Crude prices began trading post a long holiday weekend, as prices for both the benchmarks ended with a severe cut.
Crude fell on Tuesday due to uncertainty surrounding the impending OPEC+ meeting, as well as the fate of the US debt ceiling resolution in Congress.
Furthermore, pressure clouds hung over crude ahead of the release of China's manufacturing activity figures, which were expected to reflect a further downturn in factory activity.
Outlook: The rise in oil prices would likely be limited by weak Chinese manufacturing data and the US debt ceiling resolution in Congress.
BASE METALS
The weakness in the metals extended further, as metal prices on Tuesday ended on a lower note.
On Tuesday, copper prices remained near last week's six-month low as investors awaited Chinese data that is likely to reveal a further reduction in manufacturing activity.
The metal, which is used in the power and construction industries, is down 15% from its January peak due to a slower-than-expected economic recovery in China and other slowdowns.
Outlook: We expect copper to trade higher towards 719 levels, a break of which could prompt the price to move higher to 724 levels.
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Quote on Silver : Silver price falls in recent weeks Says Prathamesh Mallya, Angel One
