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

GOLD

Gold prices after closing higher on Wednesday, continue to shine further as it gained 0.79 percent and concluded at 1854.1$ per ounce.

As market investors were ready for US jobs data that would affect the Federal Reserve's policy course, the bullion hovered close to 7-week highs throughout the prolonged rises.

The much-anticipated Fed minutes revealed that the institution should tame its rapid interest rate increases.

Outlook: We expect gold to trade lower towards 55500 levels, a break of which could prompt the price to move lower to 55310 levels.

CRUDE OIL

The weakness in crude aggravated on Wednesday, as both the benchmark indices witnessed a sharp fall. The Brent cracked over 7 percent whereas the NYMEX ended lower over 5 percent, it was the worst yearly start in over three decades.

Investors' concerns over a probable global recession and the unstable short-term macroeconomic variables in the world's two major oil consumers, the United States and China, contributed to the decline in crude prices. The United States' economic figures also put additional pressure on the prices.

The weakest reading for US manufacturing since May 2020 came in December, when it fell for the second consecutive month to 48.4 from 49.0 in November.

Additionally, a US Labor Department poll revealed that job openings declined less than anticipated, sparking worries that the Federal Reserve would cite the tight labour market as justification for maintaining higher interest rates for longer.

Outlook: Given the uncertainty surrounding the economic health of the two largest oil consumers, the US and China, crude prices may continue to be under pressure.

BASE METALS

The weakness in the base metals pack persisted, as all the metals ended the Wednesday's session a lower note.

On Wednesday, as the market focused on slowing demand and economic development and the dollar recovered from early losses, copper prices fell to two-month lows.

Surging COVID cases in top consumer China, meanwhile, have reinforced concerns over demand, which is already being hampered by a decline in global industrial activity.

Also weighing on the prices is the China's Lunar New Year holidays this month, when factories sometimes shut down for weeks.

Outlook: We expect copper to trade lower towards 702 levels, a break of which could prompt the price to move lower to 692 levels.

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