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Below is "Daily Commodity Article" by Mr. Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd.

Gold remains steady; Crude extends last week’s positive momentum.

GOLD

Gold prices remained stable in light holiday trading due to a slight dip in the U.S. dollar, driven by growing confidence that the Federal Reserve has concluded its interest rate hikes.

Traders now believe the Fed is unlikely to raise rates further, especially given the recent rise in the U.S. unemployment rate and modest wage growth, which suggest a softening labor market.

This data supports the notion that the U.S. economy is slowing down without major disruptions, making a case against additional rate hikes and providing support for gold, which thrives in a low-interest-rate environment.

Outlook: We expect gold to trade lower towards 59200 levels, a break of which could prompt the price to move lower to 59120 levels.

CRUDE

Crude oil prices closed higher on Monday, primarily driven by expectations of an extension in supply cuts by key OPEC+ members, Saudi Arabia and Russia, which supported the crude prices.

There's widespread anticipation that Saudi Arabia will continue its voluntary oil cuts into October, and Russia is poised to announce a new OPEC+ supply cut agreement this week, as stated by its deputy prime minister.

Additionally, recent data revealing growing exports from Iran and Nigeria have been balanced out by declines in Saudi Arabian output, further easing concerns of an oversupply situation.

Outlook: We expect crude to trade higher towards 7200 levels, a break of which could prompt the price to move higher to 7270 levels.

BASE METALS

Copper prices experienced a retreat on Monday, primarily due to concerns about demand in China, the largest consumer of the metal, and an increase in inventories held in London Metal Exchange-registered warehouses.

However, these losses were tempered by a softer U.S. dollar. It's worth noting that trading volumes were subdued due to the Labor Day holiday in the United States.

The ongoing slowdown in China's housing market is expected to pose a persistent challenge for industrial metals.

Nonetheless, the strength in Chinese imports of certain metals suggests that demand is holding steady.

Copper inventories in LME warehouses have nearly doubled since mid-July, reaching their highest levels since October of the previous year.

Additionally, growing expectations that the U.S. Federal Reserve may be nearing the end of its monetary tightening cycle have weighed on the U.S. dollar, making dollar-priced metals more affordable for holders of other currencies.

Outlook: We expect copper to trade lower towards 733 levels, a break of which could prompt the price to move lower to 730 levels.

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