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Please find the "Daily Commodity Article" by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One Ltd.

Gold adds further to its gains; demand optimism propels crude higher.

GOLD

Post ending the previous week on a higher note, gold prices continued the momnetum in the new week, as the metal inched 0.24 percent higher and ended at 2021.4$ per ounce. 

Gold gained strength on Monday, reclaiming some ground after a loss the previous day and ahead of inflation data this week that could provide indications on the outlook for US interest rates.

According to last Friday's payrolls data, US job creation quickened in April, indicating ongoing labour market resilience.

Outlook: We expect gold to trade higher towards 61410 levels, a break of which could prompt the price to move higher to 61810 levels.

CRUDE

Amidst the weakness in the recent weeks, the benchmark crude indices ended higher on Monday, extending the gains for second day ina  row. Both, Brent and NYMEX gained nearly 3 percent, as US recession fears eased.

Brent and NYMEX both fell during the previous week, despite Friday's rebound. For the first time since November, both benchmark indices fell for three weeks in a row.

A strong US jobs report for April boosted oil prices by roughly 4% on Friday, despite the fact that labor market strength may force the Federal Reserve to maintain interest rates higher for longer.

Alberta declared a state of emergency over the weekend in response to wildfires that displaced almost 30,000 people and forced energy producers to shut down at least 185,000 barrels of oil equivalent per day, or approximately 2% of Canada's output.

Outlook: We expect crude to trade higher towards 6170 levels, a break of which could prompt the price to move higher to 6290 levels.

BASE METALS

The London market were closed for trading on Monday. However, the metals on the domestic bourses saw a decent move, with MCX Copper gaining over a percent. 

On the global front, Shanghai copper prices increased on Monday as low inventory levels provided a buffer after prices declined for three weeks in a row due to weaker-than-expected Chinese demand.

According to the World Bureau of Metal Statistics, copper inventories in SHFE warehouses fell to their lowest level since January 13th, equivalent to just over three days of China's annual demand last year.

Outlook: We expect copper to trade higher towards 759 levels, a break of which could prompt the price to move higher to 763 levels.

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