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

Gold near 6-week lows; Crude slips back in negative territory.

GOLD

On Thursday, the yellow metal slipped lower with a cut of over 1 percent, extending the weakness. Prices settled at 1958.1$ per ounce.

The fall came as further solid economic data from the US soured chances that the Federal Reserve would ease up on interest rate hikes, while bullion was also impacted by hope for a debt ceiling deal.

Optimism in the debt ceiling talks has boosted the dollar, following a lower-than-expected increase in new US unemployment claims last week.

The dollar's strength caused prices to rise to multi-week highs, as did 10-year Treasury yields based on economic data.

Outlook: Gold prices are projected to remain under pressure, with optimism over increasing the US debt ceiling and the US dollar hovering near 7-week highs, fueled by improved US economic data

CRUDE

After showing some promise the other day, crude prices were back at it again, as both benchmark indices slipped in the negative territory.

Crude prices were pushed down by optimism about a US debt ceiling deal, as well as data showing lower-than-expected initial unemployment claims, which sent the US dollar to its highest level against a basket of currencies on Wednesday.

A rising dollar can reduce the demand for oil by making it more expensive for holders of other currencies.

Markets are also being weighed down by continuously strong inflation statistics and hawkish statements from global central banks.

Outlook: We expect crude to trade lower towards 5820 levels, a break of which could prompt the price to move lower to 5720 levels.

BASE METALS

The base metals pack continue to show persistent weakness, as nearly all the metaals ended on a lower note.

Copper prices fell after strong US economic data pushed the dollar to new seven-week highs, while stockpiles in warehouses registered with the London Metal Exchange rose further.

However, excitement evaporated when demand growth from the world's largest metals consumer fell short of early lofty expectations.

The Chinese data released this week revealed that April industrial output and retail sales expanded more slowly than predicted, raising concerns about a spillover into the global economy.

The US dollar soared to record seven-week highs, making dollar-priced metals more expensive for purchasers holding other currencies, after solid US economic data reduced hopes on further Fed easing.

Outlook: We expect copper to trade lower towards 711 levels, a break of which could prompt the price to move lower to 705 levels.

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