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

GOLD

After being little changed, price of the yellow metal clawed back on a higher note, as it gained nearly 1 percent and concluded the day at 1813.9$ per ounce.

In Egypt, the price of gold has reached previously unheard levels as worried depositors seek safety from a depreciating currency and some businesses sell bullion to obtain cash-strapped dollars to pay for imports.

According to data from the gold division of the Federation of Egyptian Chambers of Commerce (FEDCOC), the cost of a gramme of 21-carat gold exceeded 1,800 Egyptian pounds ($72.73) in December, which is thought to be an all-time record.

In February, the Egyptian central bank required letters of credit for the majority of imports, which significantly slowed imports and created a backlog of products in ports.

As a result, several importers were required to buy bullion in Egyptian pounds to ship overseas in order to obtain dollars, which ultimately fueled the price surge.

Outlook: We expect gold to trade lower towards 54630 levels, a break of which could prompt the price to move lower to 54370 levels.

CRUDE

The extended holiday weekend in UK saw thin trading sessions on Tuesday as well, as the markets were closed for trading. However, the benchmark NYMEX witnessed an upsurge, as it concluded with nearly 3 percent gains.

Gains were attributed to an optimistic resurgence in fuel demand as China begins to relax COVID-19 limitations.

As China, the second-largest economy in the world, prepares to reopen its borders next month following three years of strict restrictions on commerce and travel to stop the spread of COVID, there are hopes that demand for fuel would increase.

News that Russia intends to prohibit oil deliveries to nations that adhere to a G7 price cap announced on December 5 also helped to strengthen prices.

Outlook: We expect crude to trade lower towards 6560 levels, a break of which could prompt the price to move lower to 6440 levels.

BASE METALS

The LME remained closed for trading on Tuesday, however, the metals on the MCX witnessed a positive performance, except for Copper, which ended lower.

On the other side, after China chose to eliminate visitors quarantine requirements, a significant step toward further reducing its COVID containment strategy, copper prices on the Shanghai exchange soared to their highest level in two weeks.

Hopes for extra stimulus to boost China's slowing economy, particularly governmental support for the struggling domestic real estate market, have led to additional support.

Outlook: We expect copper to trade lower towards 720 levels, a break of which could prompt the price to move lower to 710 levels.

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