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

Gold remains subdued, Crude slips over demand concerns

GOLD

Gold prices continued to remain subdued for the recently concuded week, after witnessing minor gains in the prior week.

The positive momentum from the previous week continued as prices began on a positive note, as supported by sluggish US services sector growth which increased expectations that the Federal Reserve would keep interest rates steady.

However, further during the week, gold prices fell over 1% due to an increase in US bond yields and concerns about inflation. The forthcoming US consumer inflation data and lower-than-expected Chinese exports in May could further impact gold prices.

Gold prices did see some recovery, as the dollar weakened and bond yields fell in response to an increase in US weekly unemployment claims.

The weaker economic data raised concerns about a possible recession, leading to speculation that the Federal Reserve would halt its rate hike cycle.

Outlook: We expect gold to trade lower towards 59520 levels, a break of which could prompt the price to move lower to 59390 levels.

CRUDE OIL

Crude oil witnessed a volatile week, with fluctuations in prices driven by various factors. After showing strength in the previous week, the benchmark crude index surrendered some of its gains, settling nearly 3% lower.

However, the week began on a good note as crude prices maintained their winning streak, aided by Saudi Arabia's announcement of more supply limitations. The world's top oil producer intended to cut output by 1 million barrels per day in July, adding to OPEC+ attempts to reduce output and stabilize sliding oil prices.

However, worries over a worldwide downturn and disappointing Chinese export data dampened the advances.

Towards the end of the week, crude prices drifted lower, with worries over weakening demand took precedence over the positive impact of supply reductions from global producers.

Furthermore, investor skepticism about a prospective US-Iran nuclear deal weakened market sentiment.

Outlook: Crude prices are projected to remain low for the time being, as disappointing Chinese data and weak demand sentiment continue to cast shadown over the prices.

BASE METALS

The base metals pack inched higher in the recently concluded week, as all the metals ended on a positive note.

The metals pack began the week on a lower note, eventually giving up the gains from the previous week.

However, it later recovered, boosted by a weaker dollar as a result of disappointing US economic data. However, increased stocks of a few metals in LME-registered warehouses throughout the week limited those metals advances.

Copper prices, on the other hand, fell from a four-week high as fears over slowing global economic growth outweighed hopeful predictions for Chinese economic stimulus.

Despite manufacturing challenges in China and other places, copper prices remained quite solid, bolstered by prospects for additional Chinese stimulus measures. However, China's overall exports and declining imports suggested a tough global demand outlook.

Outlook: We expect copper to trade lower towards 719 levels, a break of which could prompt the price to move lower to 721 levels.

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