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

GOLD

With gold prices ending the previous week on a high note, the bullion extended the winning streak coming into the new week. Gold gained nearly 2 percent, ending near record highs seen in 2020. 

The yellow metal has remained consistently above the $2000 mark as the dollar has weakened and a weak US economic data has fueled expectations that the Federal Reserve will ease its monetary policy.

Data showed that job openings in the United States fell to their lowest level in nearly two years in February, indicating that the labour market was cooling. 

According to another report, new orders for US manufactured goods fell for the second consecutive month in February.

Outlook: We expect gold to trade higher towards 61460 levels, a break of which could prompt the price to move higher to 61890 levels.

CRUDE Oil

Post ending the last week on a strong note, the benchmark crude index NYMEX continued to build onto the gains, as it ended with marginal gains, nearing the $81 mark. While, Brent slipped lower. 

An industry report showing expected US crude inventory declines in the week ended March 31, along with OPEC+'s latest output cut targets, aided oil prices.

The latest OPEC+ targets also aided oil prices, as the organization's plan would bring the total volume of cuts to 3.66 million bpd, including a 2 million-barrel cut last October, equivalent to approximately 3.7% of global demand.

Concerns about demand kept oil prices from rising, with US job openings in February falling to their lowest level in nearly two years and manufacturing activity slumping in March. Last month's drop in Chinese manufacturing activity exacerbated concerns about crude oil demand.

Outlook: We expect crude to trade higher towards 6780 levels, a break of which could prompt the price to move higher to 6900 levels.

BASE METALS

The base metas pack on Tuesday ended on a lower note, with LME Copper and LME Zinc being the top losing metals, down 1.86 and @.31 percent respectively. 

Copper prices fell as weak US economic data raised concerns about global growth and metals demand.

Global copper smelting activity fell in March due to lower activity in China and the US, according to data from metal processing plant satellite surveillance released on Tuesday.

The month began strongly in China, the world's top refined copper producer, but a growing number of smelters went out of business, resulting in a drop in smelting activity.

Outlook: We expect copper to trade lower towards 760 levels, a break of which could prompt the price to move lower to 754 levels.

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