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

GOLD

On Wednesday, prices of the yellow metal ended on a lower note, as it settled with a cut of 0.54 percent to 1804.1$ per ounce.

A stronger dollar and higher Treasury yields put pressure on the price of gold.

As a result of hopes that the U.S. central bank will limit the rate of interest rate increases, gold has gained about $200 since it reached a more than two-year low in September.

Outlook: We expect gold to trade lower towards 54440 levels, a break of which could prompt the price to move lower to 54210 levels.

CRUDE OIL

 After ending on a higher note, the benchmark NYMEX index failed to extend the gains, as it ended on a lower note. On the other hand, the Brent index which began trading post a long holiday weekend, ended with a cut of 1.40 percent.

While China started to abolish the strictest COVID policy of lockdowns and testing, some nations passed new travel restrictions on Chinese tourists in response to the severity of the most recent outbreak and questions about official data.

As the Federal Reserve works to contain price increases in a tight labour market, anticipation of a further increase in interest rates in the United States roiled the oil markets.

Outlook: We expect crude to trade lower towards 6380 levels, a break of which could prompt the price to move lower to 6250.

BASE METALS

The base metals pack ended on a lower note, as most metals witnessed selling pressure, as LME Lead was the top losing metal.

Copper prices declined from their two-week high reached in the previous day as mounting COVID-19 infections in China and concerns about a worldwide economic downturn weighed on the market.

The world's largest consumer of industrial metals, China, is likely to see a decline in metal demand due to increases in COVID-19 cases and the Lunar New Year break next month, however supply issues may provide some support.

Outlook: We expect copper to trade lower towards 717 levels, a break of which could prompt the price to move lower to 707 levels.

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