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

                                              Gold ends lower for 3^rd day straight; Crude settles lower too.

GOLD

Despite trimming gains in response to a stronger dollar, gold maintained its stability as concerns about a tight U.S. job market took center stage. The precious metal found support from a drop in 10-year Treasury yields.

With a 93% likelihood of the Federal Reserve keeping interest rates unchanged at its upcoming meeting, gold remained resilient.

This resilience is notable as higher U.S. interest rates typically make gold less attractive, as it does not earn any interest.

The Fed's recent "Beige Book" indicated modest economic growth in the U.S., marked by cooling job growth and inflation, adding to the cautious sentiment surrounding gold's performance.

Outlook: We expect gold to trade lower towards 58800 levels, a break of which could prompt the price to move lower to 58710 levels.

CRUDE OIL

Oil prices dipped due to ongoing concerns about slower global demand, although they were still on track for a second consecutive weekly gain, driven by expectations of tightening supplies.

Recent fears of potential shortages during the upcoming winter demand season, following Saudi Arabia and Russia's extension of supply cuts, had pushed both benchmarks to 10-month highs earlier in the week.

Meanwhile, China's overall trade data indicated economic challenges, with declining exports and imports. Nevertheless, China's crude imports surged by 30.9% in the previous month as refiners built inventories and increased processing for higher export profits.

Furthermore, a larger-than-expected draw in U.S. crude oil inventories offered limited support to oil prices, with U.S. stockpiles falling for the fourth consecutive week, down more than 6% in the past month, reflecting high refinery activity to meet global energy demand.

Outlook: Crude oil prices are showing resilience amid concerns of slower global demand, buoyed by expectations of tightening supplies and recent stockpile drawdowns.

BASE METALS

Base metals faced downward pressure due to China's slowing industrial output growth and decreasing property investment; however, the possibility of additional supportive policies could counter excessive declines.

A weaker U.S. dollar provided some support, making dollar-priced metals more appealing to non-dollar buyers.

Despite this, the outlook for metals remains influenced by China's economic situation, while stronger U.S. retail sales point towards ongoing economic expansion.

Notably, other growth-dependent metals like nickel and zinc also experienced declines, with signs of increased zinc arrivals at LME-registered warehouses.

Outlook: The base metals market faces pressure from China's weakening demand outlook, but potential supportive measures and a weaker U.S. dollar may counterbalance declines.

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