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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 continuees its downward trajectory, as prices end the Wednesday's session with a half percentage cut, ending at 1825$ per ounce. 

The Federal Reserve is likely to maintain higher interest rates for a longer period of time, according to minutes from its most recent policy meeting, which put pressure on the price of yellow metal.

Although rising interest rates reduce the appeal of the non-yielding asset, gold is nonetheless regarded as a hedge against inflation.

Outlook: We expect gold to trade lower towards 55850 levels, a break of which could prompt the price to move lower to 55690 levels.

CRUDE OIL

Crude prices continue to witness selling pressure, as benchmark indices Brent and NYMEX, each ending with a 2 percent cut. 

The persistent decline in oil price coincides with growing worries that central banks' more aggressive interest rate increases could stifle economic development and fuel demand.

According to the minutes of the most recent US Federal Reserve meeting, the majority of Fed officials concurred that the risks of rising inflation remained an important issue influencing monetary policy and advocated for continuing rate hikes.

Outlook: We expect crude to trade lower towards 6040 levels, a break of which could prompt the price to move lower to 5920 levels.
 

BASE METALS

The base metals pack on Wednesday concluded the day on a lower note, as most of the metals ended lower, except for MCX Nickel and zinc, which managed to end higher. 

On Wednesday, copper prices plunged due to concerns over further rate increases by the central bank, which could slow economic growth, and weak demand in China, the world's largest consumer of metals.

Data released on Tuesday revealed that US economic activity unexpectedly increased to an eight-month high in February, indicating that the Fed will need to tighten monetary policy more in order to reduce inflation.

The market was also being impacted by weak metals demand in China.

Outlook: Given the weaker Chinese demand and the likelihood of an interest rate increase by the US Fed, metal prices are anticipated to be under pressure.

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