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

Gold remains close to 2 months, MCX Crude settled higher.

GOLD

Gold prices after concluding lower in the previous week, extended the weakness on Monday, as prices slipped marginally.

In light of the US debt ceiling agreement and holiday-thinned trading, gold prices remained close to two-month lows on Monday.

However, the likelihood of a rate increase by the US Federal Reserve, which is now expected to do so in light of last week's economic data, reduced demand for bullion.

Washington's announcement of the debt agreement came on a long weekend when markets in the US and certain regions of Europe, including Britain were closed.

Outlook: We expect gold to trade higher towards 59810 levels, a break of which could prompt the price to move higher to 59950 levels.

CRUDE OIL

Crude prices in the recently conlcuded week was able to post yet another week of positive returns, however, the markets were closed for trading on Monday, however, domestic MCX Crude prices gained over half a percent.

The easing of uncertainty surrounding the debt ceiling agreement in the United States will increase demand. However, concerns about more interest rate hikes and OPEC+ maintaining output caps restrained the upside.

Over the weekend, US President Joe Biden and House Speaker Kevin McCarthy reached an agreement to suspend the $31.4 trillion debt ceiling and cap federal spending for the next two years.

Investors are now looking forward to the OPEC+ meeting to see if they would provide another output cut after the previous meeting.

Outlook: Crude prices are expected to rise further due to increased demand predictions for the forthcoming peak demand season in the United States.

BASE METALS

The LME remained closed for trading on Monday. However, on the domestic bourses the metals had a mixed session.

Despite the metals' decline, Shanghai copper prices jumped to their highest in a week on Monday as risk sentiment strengthened following an agreement to suspend the US government's debt ceiling.

On Saturday, US President Joe Biden and Republican Kevin McCarthy reached an agreement to postpone the $31.4 trillion debt ceiling until 2025, averting an economically destabilizing default.

Outlook: We expect copper to trade higher towards 723 levels, a break of which could prompt the price to move higher to 728 levels.

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