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Below is "Daily Commodity Article" by Mr. Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd.

Gold continues its slump; Crude gives up its winning streak.

GOLD

Extending a cut from the previous week, gold prices breached the $1900 per ounce mark, hitting its lowest point since June end and concluding below the same.

This drop was triggered by rising 10-year U.S. Treasury yields, reaching a 10-month high and making them more appealing than non-interest bearing gold.

Gold priced in pounds hit a July low due to a strengthening sterling prompted by robust British basic wage growth.

The Federal Reserve's mixed signals on interest rates, coupled with a strong dollar, further dented investor sentiment.

Consequently, gold prices hit a five-month low, down over 8% since May, due to diminished appeal and heightened opportunity cost in light of rising U.S. interest rates.

Outlook: With the dollar and treasury yields on the rise, capping the upside, gold prices are expected to face pressure.

CRUDE

Amidst the ongoing streak of higher closes, crude prices in the recently ended week snapped the winning streak, as benchmark crude indices ended on a lower note.

Oil prices began the week with a 1% cut as weak Chinese economic data overshadowed reduced U.S. stockpiles.

China's sluggish July figures for retail sales, industrial output, and investment have fueled concerns about a prolonged growth slowdown, impacting global oil demand.

Despite China's rate cuts and calls for stimulus, doubts persist about reversing economic decline.

Additional pressure came from the U.S. Federal Reserve's focus on inflation control, raising prospects of further tightening.

Outlook: We expect crude to trade higher towards 6820 levels, a break of which could prompt the price to move lower to 6890 levels.

BASE METALS

Weakness from the previous week continued further, as most of the metals ended lower during the week., with LME Zinc being the top losing metal, down over 2 percent.

Zinc hit a two-month low due to increased LME-registered warehouse inventories, signaling surplus amid weak demand.

Base metals faced downward pressure due to China's slowing industrial output and property investment.

Copper slipped near to seven-week lows, impacted by limited Chinese stimulus.

LME aluminum prices reached a five-week low due to supply concerns.

Supportive policies may counter declines, while a weaker U.S. dollar offered some relief.

Outlook: Given the robust dollar, discouraging Chinese economic statistics, and delayed stimulus measures, metals that have fallen to monthly lows are anticipated to continue facing pressure.

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