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GOLD

Yellow metal prices saw a recovery from their 2-and-a-half-year lows, as a minor decline in the dollar index caused the prices to revert to the positive territory. On Tuesday, the Bullion closed at 1628.8$ per ounce, up 0.45 percent.

The escalation on the Russia and Ukraine front may limit the negative risk for gold, which acts as a safe haven asset during periods of global unpredictability

However, the safe haven gold is also seen as a hedge against inflation, the interest rate hikes dampen the demand for the metal.

Outlook:We expect gold to trade lower towards 49010 levels, break of which could prompt the price to move lower to 48590 levels.

CRUDE

On Tuesday, crude prices witnessed a relief from the prolonged pressure, as the benchmark crude indices Brent and NYMEX ended with gains of over 1 and 2 percent respectively.

The US producers had to recall their employees to offshore oil platforms and shut down production in advance of Hurricane Ian, which entered the US Gulf of Mexico on Tuesday, which is anticipated to intensify into a hazardous Category 4 storm. This led to the uptick in crude prices.

The US Gulf of Mexico, which produces roughly 15% of the country's crude oil and 5% of its dry natural gas, as Ian is the first hurricane this year to disrupt oil and gas production in the US Gulf of Mexico.

Limiting oil prices was the US dollar, which trades inversely with oil, remained near a 20-year high.

Outlook:We expect crude to trade lower towards 6360 levels, break of which could prompt the price to move lower to 6220 levels.

BASE METALS

The base metals pack on Tuesday witnessed a mixed session, as on the LME all the metals ended on a lower note, except for Copper. Howeer, on the MCX, most of the metals traded positive, except for Zinc.

The decline in the base metals came as hawkish messages from central banks kept investors on edge and the World Bank lowering its forecast for China, the world's largest buyer of metals.

Prices for copper, which is often used as an economic barometer, have plunged more than 25% so far this year as a result of the conflict in the Ukraine, hefty rate increases, and China's tough COVID-19 regulations.

Outlook:We expect copper to trade lower towards 619 levels, break of which could prompt the price to move lower to 609 levels.

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