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GOLD

Gold's weekly performance was marked by a decline as the US dollar rebounded, diminishing its appeal to buyers using other currencies.

On Tuesday, gold faced further weakness due to strong US housing starts data and a firmer dollar.

Further, the market waited eagerly for the US Federal Reserve Chair, Jerome Powell's testimony, as it was anticipated to offer some crucial insights into future interest rates.

The uncertainty surrounding gold's performance was also fueled by the European Union's inflation. The inflation in the UK remained high, with markets expecting more interest rate hikes.

Gold prices sank to a three-month low as Powell concluded his testimony and the prospect of further rate hikes outweighed other factors.

Outlook: We expect gold to trade lower towards 58091 levels, a break of which could prompt the price to move lower to 57990 levels.

CRUDE

Crude oil faced a mixed week with varying factors influencing its performance, giving up some of the gains from the previous week and ending with a 2 percent cut.

Concerns over the Chinese economy and skepticism about stimulus measures weighed on market sentiment.

The anticipation of Jerome Powell's testimony and a stronger dollar further maintained pressure on crude prices. Higher interest rates in the UK and indications of future rate hikes in the US raised concerns about oil demand.

On the supply side, Iran's crude exports reached new highs despite sanctions, while US oil stocks fell unexpectedly.

Outlook: The pressure on crude oil prices is set to continue as central banks around the world hike interest rates in an effort to keep inflation in check.

BASE METALS

After closing on a higher note for the previous three weeks, the base metals pack ended on a lower note, with copper snapping a four-week winning streak.

To boost the country's sluggish economic recovery, Chinese officials implemented their first lending rate cuts in ten months. However, the cuts were not as extensive as expected. 

The pressure on the metal prices came on the back of a disappointment over the size of interest rate cuts in China, which is a major consumer of these metals.

Shanghai copper prices, on the other hand, reached an eight-month high, boosted by a weaker yuan and an increase in the copper premium in the Chinese spot market.

Copper inventories at monitored Chinese warehouses declined 1.1% this week, but sentiment remained pessimistic due to the lack of any economic stimulus to promote metal demand growth.

Outlook: We expect copper to trade lower towards 713 levels, a break of which could prompt the price to move lower to 708 levels.

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