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

GOLD

The yellow metal continues to shine brighter, as it added up to its gains from the previous sessions. It ended 0.30 percent higher and concluded at 1877.3$ per ounce.

Investors refrained from making large bets ahead of key US inflation data due later this week.

Gold is considered an inflation hedge but is highly sensitive to rising interest rates, which increases the opportunity cost of holding the non-yielding bullion.

Outlook: The weakness in the dollar which is hovering near 7-month lows, will keep prices underpinned.

CRUDE OIL

On Tuesday, the benchmark crude indices witnessed a positive momentum, as NYMEX and Brent ended 0.75 and 0.66 percent higher respectively.

Fears that the US may raise interest rates to combat inflation, which would lead to a recession and reduce fuel demand, have dragged down the price of oil, offsetting expectations that China's fuel demand will increase.

This week's main focus is the US inflation report, which is due on Thursday. A weaker dollar might increase oil demand since it makes the commodity more affordable for buyers using foreign currencies if the inflation turns out to be lower than expected.

Outlook: Crude prices are expected to remain elevated, as the demand is likely to pick pace given the optimism flowing out of China.

BASE METALS

In the base metals section, except for Lead and Zinc, all the other metals ended on a higher note, with LME Aluminium being the top gainer.

A weaker dollar and expectations of increased demand for the metal following the reopening of the economy of the metal's largest user, China, both contributed to copper prices remaining close to 6-1/2-month highs reached in the previous session on Wednesday.

Investor confidence has increased as a result of Beijing's numerous regulatory initiatives to strengthen its economy and struggling real estate market.

The US dollar index was around a seven-month low, supporting prices even more and making it more appealing for holders of other currencies to purchase the goods priced in dollars.

Outlook: We expect copper to trade higher towards 766 levels, a break of which could prompt the price to move lower to 777 levels.

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