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Please find the "Daily Commodity Article" by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One Ltd.

Gold moves Northwards; Crude gains too, however ends the week lower.

GOLD

Just as gold had ended the previous week on a flat note, bullion prices soared almost 2 percent after the end of the current week.

Fresh concerns about banking sector contagion in the US before the Federal Reserve's much-anticipated interest rate hike fuelled the rise in the price of the yellow metal. 

Not to mention that First Republic Bank's failure increased market apprehensions about the viability of other mid-sized lenders, ultimately raising the demand for the safe-haven asset. 

After the US Federal Reserve signaled it would pause its rate-hike cycle, the dollar fell and the US dollar started to decline. This gave the market further momentum.

Economic uncertainty and lower interest rates tend to increase demand for zero-yielding assets.

Outlook: We expect gold to trade higher towards 61110 levels, a break of which could prompt the price to move higher to 61510 levels.

CRUDE

The benchmark index NYMEX dipped by about 6 percent, continuing the decline from the previous two weeks, indicating that oil price weakness is still present. 

Oil prices decreased for the third week in a row as a result of weakening US economic conditions and sluggish Chinese demand.

Crude started the week on no different note as benchmark indices sank more than 5% to a five-week low on Tuesday as US policymakers explored ways to avoid a default on their debt and investors prepared for a US Fed rate hike this week that might reduce energy demand.

Further pain came from China, where data indicated that factory activity in April declined sharply. China is the world's largest energy consumer and crude oil buyer.

The OPEC+ nations started voluntary production cutbacks of about 1.16 million barrels per day at the beginning of this month, which are anticipated to support the market as it enters the summer high-demand period, thus prices are likely to find some relief.

Outlook: We expect crude to trade lower towards 5700 levels, a break of which could prompt the price to move lower to 5570 levels.

BASE METALS

Except for LME Copper and LME Zinc, all the other metals ended on a lower note for the week gone by. 

The week did not begin well for the metals market, however, as copper prices started to retrace from one-week highs as a result of weak industrial activity in the world's largest consumer of metals, China, and uncertainty around US interest rates.

Data showing a steep decline in China's manufacturing activity in April added to the market's pressure as officials looked to boost a failing post-COVID economy.

In China, industrial output unexpectedly dropped in April as a result of falling orders and weak domestic demand, which jeopardized the second quarter's overall economic outlook.

The US Fed's much-anticipated 25 basis point rate hike over the week and limiting the downside risk for the metals. 

Outlook: We expect copper to trade higher towards 751 levels, a break of which could prompt the price to move higher to 755 levels.

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