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

GOLD

On Wednesday, gold prices slipped lower, losing nearly all the gains seen in the previous sessions. Bullion hit its lowest level since early January, as it cracked nearly a percent lower.

On Thursday, gold prices declined as the dollar strengthened following recent economic data that increased expectations that the US Federal Reserve would increase interest rates further to combat excessive inflation.

President of the European Central Bank Christine Lagarde reiterated the bank's most recent policy guidance on Wednesday, stating that the euro-inflation zone's rate is still far too high and that the ECB will maintain raising interest rates to reduce underlying price pressures.

Outlook: We expect gold to trade lower towards 55800 levels, a break of which could prompt the price to move lower to 55570 levels.  

CRUDE OIL   

Pressure continues to mount in crude, as on Wednesday the benchmark crude indices ended on a lower note. Brent ended nearly 2 percent lower, whereas, NYMEX ended half percent down.

Investors were concerned that rising interest rates would slow the economy and reduce demand for fuel, which limited the upside due to the strengthening of the US currency.

In light of good US retail sales data from last month and current US inflation data, the US dollar increased to a level that is nearly six weeks high. This suggests that the Federal Reserve will maintain its restrictive monetary policy.

According to Federal Reserve officials, the US central bank must continue raising interest rates gradually to combat inflation. Investors fear that a rise in rates could weaken the economy.

Outlook: We expect crude to trade lower towards 6360 levels, a break of which could prompt the price to move lower to 6240 levels.  

BASE METALS

The base metals pack ended in the negative territory, with MCX NIckel being the top loser, down nearly 6 percent.

On Wednesday, aluminium prices hit a five-week low as a result of weak Chinese demand and a rapid accumulation of stock in exchange warehouses.

Industrial metal prices rose in January as a result of speculations that China's economy will recover from its decline last year, with aluminium hitting a seven-month high.

Outlook: We expect copper to trade lower towards 760 levels, a break of which could prompt the price to move lower to 750 levels.  

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