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GOLD

Extending the positive momentum from the previous session, gold prices gained nearly 1 percent, adding up to the gains to end the week on a higher note. Bullion prices on Thursday ended at $1980.3 per ounce.

Gold, on the other hand, is expected to end the quarter and the month higher on expectations that the Fed will consider a rate-hike pause following the failure of two US regional banks.

Markets believe the Fed will keep interest rates unchanged in May. When interest rates are raised, the opportunity cost of holding non-yielding gold rises.

The Fed's preferred inflation measure, Personal Consumption Expenditures data, is due today, which could provide more insight into the US central bank's next move.

Outlook: We expect gold to trade higher towards 59860 levels, a break of which could prompt the price to move higher to 60310 levels.

CRUDE

Brent and NYMEX continue to extend their gains, building on the strong momentum over the previous sessions. Brent ended little over 0.220 percent, whereas NYMEX was up nearly 2 percent.

Crude prices rose as a result of lower US crude stockpiles and a halt to exports from Iraq's Kurdistan region, offsetting pressure from a smaller-than-expected cut in Russian supplies.

Following the shutdown of the northern export pipeline, producers have shut down or reduced output at several oilfields in northern Iraq's semi-autonomous Kurdistan region. More outages are on the way.

On Saturday, Iraq was forced to halt approximately 450,000 barrels per day (bpd) of crude exports from the Kurdistan region via a pipeline that runs from its northern Kirkuk oil fields to the Turkish port of Ceyhan.

These factors helped to offset bearish sentiment after Russia cut crude oil production by less than expected in the first three weeks of March.

Outlook: Oil prices are expected to remain high as producers limit output at several Kurdish oilfields in response to Iraq's half of the Northern pipeline.

BASE METALS

The base metals pack ended the Thursday's session on a mixed note, as copper, aluminium and and zinc ended on a lower note.

Nickel prices fell on Thursday after the London Metal Exchange (LME) announced plans to expand its contract, while copper prices held steady on signs of improving demand in China, the world's largest metals consumer.

In the second quarter of 2023, China's top smelters agreed on a lower guide price for treatment and refining charges (TC/RCs) for copper concentrate processing.

Spot TC/RCs have also fallen, indicating a reduction in the availability of concentrate, partially treated ore that smelters process to produce refined copper.

Leading metals consumer China's factory activity is likely to have increased at a slower rate in March, indicating that the economy's recovery is uneven in light of weak global demand and a property slump.

Outlook: Metal prices are likely to fall as a result of mixed signals from top consumer China, as manufacturing activity has slowed in recent month.