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

Gold loses; Oil settles higher after Saudi’s warning.

GOLD

On Tuesday, gold prices slipped marginally lower, as stronger dollar continued to maintain pressure.

Investors were cautious ahead of an eventful week, with the spotlight remaining on the US debt ceiling talks, as well as this week's Federal Reserve policy minutes and economic data.

The dollar index remained stable, making dollar-priced gold less appealing to foreign buyers.

US President Joe Biden and Kevin McCarthy were unable to reach a deal on Monday on how to raise the $31.4 trillion debt ceiling just days before a potential default that could destroy the economy, but they promised to keep negotiating.

Outlook: We expect gold to trade higher towards 60580 levels, a break of which could prompt the price to move higher to 60790 levels.

CRUDE OIL

The benchmark crude indices continued to gain during the Tuesday's session.

Markets were still apprehensive of US debt ceiling talks, which dampened oil price increases. Another round of debt ceiling talks concluded on Tuesday with no indications of progress, as the deadline to raise the government's $31.4 trillion borrowing cap or risk default approaches.

Furthermore, tightening US oil and fuel supplies, as well as a warning to speculators from the Saudi energy minister, heightened the probability of future OPEC+ output cutbacks.

Outlook: We expect crude to trade higher towards 6190 levels, a break of which could prompt the price to move higher to 6270 levels.

BASE METALS

The base metals continue with theor underperformance, as on TUesday, the prices of most of the metals ended on a lower note.

Prices fell on concerns about the performance of major economies, as well as because a strong US dollar made it less appealing to buy commodities priced in US dollars.

As China's economic recovery falters, the prognosis for the metal used largely in building, power, and transportation has dimmed.

The dollar maintained steady on Tuesday after hitting a two-month high the day before, owing to a lack of progress in discussions to raise the US debt ceiling.

Outlook: We expect copper to trade higher towards 723 levels, a break of which could prompt the price to move higher to 727 levels.

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