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

GOLD

Gold prices remained little changed on Monday, although trading was thin after the long Christmas weekend.

Data released on Friday revealed that US consumer spending increased 0.1% in November after increasing 0.4% in October, as inflation started to further slowdown.

ECB policymaker Isabel Schnabel stated in an interview that the bank must be ready to withstand pressure and continue raising interest rates.

Outlook: The demand for safe haven gold is anticipated to remain strong despite dropping US inflation and mounting concerns over Covid-19 instances in China.

CRUDE

On Friday, Brent rose 3.6%, while WTI gained 2.7%. Both benchmarks recorded their biggest weekly gains since October. British and U.S. markets were closed on Monday for the Christmas holiday.

There are worries that the winter storm that is battering the United States is impacting logistics and production of oil products and shale oil, although the trade was thin as many market participants were away on holiday,

On Friday, bitter cold and strong winds curtailed energy production across the country and caused power outages, raising the cost of electricity and heating. Russia's potential production cutbacks were another factor driving today's surge.

Outlook: The winter storm that has impacted production of oil and other products, might keep crude prices high.

BASE METALS

In what was a thin trading session on Monday, as the LME market remained closed, metals on the MCX witnessed a positive momentum, as all metals ended on a higher note, except for Lead, which concluded lower.

Given its strict zero COVID policy, China has recently opted to do away with traveller quarantine requirements, which is a significant step towards loosening its COVID containment strategy.

Beginning the second week of January, China will no longer require visitors to enter quarantine, reversing a draconian "zero-COVID" policy that has stifled business growth and domestic demand.

Outlook: Hopes of additional stimulus to shore up China's slowing economy would likely see a pickup in demand for metals, which will keep the price high.

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