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

GOLD

Gold prices rallied as the U.S. Federal Reserve raised interest rates by a quarter of a percentage point, marking the 11th hike in 12 policy meetings.

The accompanying policy statement hinted at the possibility of another rate increase in the future. Federal Reserve Chair Jerome Powell avoided providing too much forward guidance.

The weaker dollar, down 0.4% against its rivals, and slipping U.S. 10-year Treasury yields boosted gold's appeal as an investment.

With the focus turning to policy decisions from the European Central Bank and Bank of Japan this week, gold's performance may continue to be influenced by global economic trends.

Outlook: We expect gold to trade higher towards 59670 levels, a break of which could prompt the price to move higher to 59760 levels.

CRUDE OIL

Crude oil prices experienced a slight decline on Wednesday as U.S. crude inventories fell below expectations and the Federal Reserve's interest rate hike left room for another increase.

However, the market found some support from China's promise of economic stimulus.

The upcoming interest rate hike by the European Central Bank also indicated continued policy tightening amid persistent inflation.

Despite the losses, oil prices were partially offset by low inventories at Cushing, the WTI pricing point.

Over the past four weeks, oil prices have been on a rally, driven by signs of tighter supplies from output cuts by Saudi Arabia and Russia, as well as China's efforts to strengthen its economy.

Outlook: We expect crude oil to trade lower towards 6380 levels, a break of which could prompt the price to move lower to 6300 levels.

BASE METALS

Base metal prices declined on Wednesday as hopes for increased demand from China, the top consumer, dampened when Beijing's promise to support economic recovery lacked specific measures.

Traders and investors closely monitored the expected U.S. Federal Reserve interest rate hike and any indications of future rate trends.

Despite the recent drop, the metal, utilized in power and construction, had a 2% increase earlier in the week following China's commitment to optimize property policies and boost domestic demand.

However, copper inventories in LME-approved warehouses rose by 12% over the past two weeks to 60,700 metric tonnes.

Outlook: We expect copper to trade higher towards 744 levels, a break of which could prompt the price to move higher to 748 levels.

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