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

GOLD

Bullion prices broke through the $1900 level during the sustained uptrend, and the metal finished the week with a gain of 2.6 percent.

A weaker dollar, which dropped to its lowest level in seven months, making gold less expensive for overseas buyers, supported the rise in prices. In spite of anticipation that the US Fed will pause the rate hikes, it appears likely that it will raise policy rates by 25 basis points at its upcoming meeting.

US consumer prices fell in December for the first time in more than two and a half years, giving rise to hopes that inflation was finally on a stable downward path.

The opportunity cost of storing the non-yielding bullion increases due to the high vulnerability of gold to rising interest rates, despite the fact that it is seen as an inflation hedge.

Outlook: We expect gold to trade higher towards 56610 levels, a break of which could prompt the price to move lower to 56850 levels.

CRUDE OIL

Crude prices recovered after the previous week's winning streak was broken as the benchmark index NYMEX finished the week strongly up, making up for the losses.

The price of crude increased after China, the top consumer of crude oil, opened its borders for the first time in three years over the weekend, stoking expectations of increased demand.

However, as data showed that US inflation fell for the first time in 2-1/2 years, fueling hopes that the Federal Reserve would slow the pace of rate hikes, the dollar dropped to a nearly nine-month low.

When the dollar is weaker, oil tends to be more in demand because foreign currency buyers can afford it more freely.

Outlook: We expect crude to trade higher towards 6640 levels, a break of which could prompt the price to move higher to 6750 levels.

BASE METALS

Metals such as Copper and Zinc added up to their gains from the previous week, while other metals such as Nickel and Lead slipped lower, concluding on a lower note.

The price of the light metal aluminium increased by more than 6% this week as supplies in LME-registered warehouses for the metal are getting close to 22-year lows attained in August of last year.

On the other hand, copper prices increased to their highest level in more than six months as a result of a better outlook for demand following China's largest buyer, the United States, reopening its borders.

Additionally, as copper prices topped $9,000 per tonne for the first time since June, the US dollar index was around a seven-month low, which helped to bolster prices even more.

Beijing's numerous regulatory attempts to boost its economy and struggling real estate market have increased investor confidence.

Outlook: We expect copper to trade higher towards 781 levels, a break of which could prompt the price to move higher to 792 levels.

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