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

GOLD

Gold prices on Wednesday witnessed a pullback, however, it still managed to end above the $1800 mark. Bullion ended with a 0.18 percent cut and concluded at 1814.1$ per ounce.

As the market awaited the US economic figures for further guidance, prices barely changed.

After four consecutive 75 bps rate increases, the US Federal Reserve progressively slowed the pace of rate increases to 50 bps in December.

Despite the fact that the economy is teetering on the brink of a potential recession, Fed Chair Jerome Powell stated the U.S. central bank would continue to raise interest rates in 2023.

Outlook: We expect gold to trade higher towards 55260 levels, a break of which could prompt the price to move lower to 55560 levels.

CRUDE

After witnessing a mixed session in the previous session, benchmark crude indices gained the lost ground, as both indices climbed higher on Wednesday. Brent and NYMEX gained 1.02 and 2.89 percent respectively.

After government statistics revealed that US crude stocks dropped by a lot more than anticipated for the week ending December 16, crude prices spiked on Wednesday.

The falling stockpiles come as demand for heating oil is expected to surge, with a severe winter storm expected to reach the United States.

Outlook: Crude prices would continue to rise, but given the growing number of COVID-19 cases in China, the upside is probably limited.

BASE METALS

On Wednesday, the base metals witnessed a mixed session, as metals Zinc being the top losing metal on LME and on MCX.

On the other hand, copper prices increased owing to a weaker US currency and low stockpiles, while gains were restrained by concerns over demand dwindling because of a rise in COVID-19 infections in main consumer China.

After the Bank of Japan's unexpected adjustment to its bond yield control earlier this week, the yen strengthened near its most recent four-month high, putting further pressure on the dollar's position relative to its rivals.

The International Copper Study Group (ICSG) reported in its most recent monthly bulletin that there was a 46,000-tonne surplus on the global market for refined copper in October as opposed to an 85,000-tonne deficit in September.

Outlook: Although the situation in China would limit any increases in metal, it is anticipated that a weaker dollar will support metal prices.

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