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

Gold likely to end higher for the week; Oil heads for weekly fall on demand worries.

GOLD

Amidst a resilient dollar and rising bond yields, gold prices maintained stability on Thursday.

Investors displayed caution in anticipation of Federal Reserve Chair Jerome Powell's address at the Jackson Hole symposium.

The symposium, an annual event, has become a focal point for insights into the Fed's policy direction. Powell's speech, scheduled for Friday, is expected to shed light on the potential trajectory of interest rates.

Despite a decrease in new claims for unemployment benefits, the tight labor market persisted, influenced by the Fed's assertive rate adjustments.

A rebounding dollar and increased U.S. Treasury yields post the jobless claims report further eroded gold's appeal.

Outlook: We expect gold to trade higher towards 58970 levels, a break of which could prompt the price to move higher to 59030 levels.

CRUDE

Oil prices faced a minor dip, poised for a weekly decrease due to subdued manufacturing activity impacting global demand and the steadiness of the dollar. The week marked a consecutive 2%-3% decline in crude values.

As anticipation surrounded Federal Reserve Chair Jerome Powell's forthcoming remarks at the Jackson Hole Symposium, the safe-haven dollar surged to a 10-week pinnacle, deterring demand as a robust dollar amplifies oil costs for other currency holders.

The week's trajectory was influenced by dwindling factory activity across economies, including Japan, the Eurozone, and the UK.

India's oil consumption growth decelerated due to inflation and sluggish global trade, while Iran projected increased crude output despite lingering U.S. sanctions.

Outlook: We expect crude to trade lower towards 6470 levels, a break of which could prompt the price to move lower to 6390 levels.

BASE METALS

Copper prices retreated due to concerns over elevated interest rates constraining worldwide growth, countering the positive outlook for demand in China, a major metals consumer.

Despite this, copper prices on the Shanghai Futures Exchange (SHFE) reached a nearly three-week peak, driven by expectations of increased demand supported by policy measures and the upcoming high-consumption season in China.

The resilience of the dollar exerted pressure on metals values, with investors adopting a cautious stance in anticipation of the Federal Reserve's Jackson Hole symposium.

A robust dollar renders commodities priced in USD more costly for those using other currencies. The symposium follows a series of rate hikes that have dampened economic expansion and metal demand.

Outlook: We expect copper to trade higher towards 743 levels, a break of which could prompt the price to move higher to 745 levels

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