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

Gold slips lower as dollar strengthens; Oil prices witnessed a sharp pullback.

GOLD

Gold prices extend the weakness for yet another day, as it slipped over half a percentage to conclude at 2015.5$ per ounce.

On Thursday, gold fell as the rival safe-haven dollar rose and overshadowed bullion's exposure to lingering economic uncertainties.

Gold rose as data showed an increase in weekly jobless claims and the weakest annual gain in producer prices in over two years last month.

Data released on Wednesday indicated that the annual growth in US consumer prices dropped to less than 5% in April for the first time in two years, but remained considerably above the Fed's 2% objective.

Outlook: We expect gold to trade lower towards 60380 levels, a break of which could prompt the price to move lower to 60020 levels.

CRUDE OIL

Weakness persists in crude, as both benchmark indices on Thursday slipped lower. Brent snapped over 1 percent, whereas NYMEX plunged over 2 percent.

The uncertainty around the US debt ceiling, as well as fresh fears of a regional banking crisis in the US, knocked on oil prices.

China's April consumer pricing data climbed at a slower pace and fell short of expectations, while factory gate deflation deepened, implying that additional stimulus may be required to strengthen the country's uneven post-COVID-19 economic recovery.

On Thursday, OPEC maintained its global oil demand forecast for 2023 for the third month in a row, noting possible Chinese growth tempered by adverse economic concerns elsewhere, such as the US debt ceiling.

Outlook: Uncertainties around crude eventually weigh on prices and drive them down.

BASE METALS 

The slow economic recovery in the largest consumer, China, has increased concerns about the demand forecast in the face of expanding supplies, and the price of copper is on track to decline for the week.

Due to a slow economic recovery and a weak export market, China's consumption of industrial metals has remained muted during the second quarter, which is typically a time of peak demand.

Concerns over the strength of the nation's economic recovery were increased by China's inflation figures on Thursday.

A strong dollar weighed down costs even more, often making it less appealing for holders of other currencies to purchase the good priced in greenbacks.

Outlook: We expect copper to trade lower towards 721 levels, a break of which could prompt the price to move lower to 715 levels.

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