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

GOLD

After ending the previous week on a higher note, the yellow metal continued to witness an uptick in the following session, ending with 0.25 percent gains.

Investors are waiting for the US fourth quarter GDP growth estimates data in the expectation that the Federal Reserve would raise interest rates more slowly.

At its upcoming policy meeting, the Fed is expected to raise rates by 25 basis points, having slowed the pace to 50 bps in December after four consecutive 75-bp increases.

Outlook: We expect gold to trade higher towards 56990 levels, a break of which could prompt the price to move higher to 57130 levels.

CRUDE OIL

Crude prices on Monday extend the gains post ending the week on a positive note, as both benchmarks Brent and NYMEX ended with gains.

Gains were driven by expectations of a revival in demand from major importer China as well as by the prognosis for the world economy.

As China, no longer constrained by economic controls, has shown signals of increased buying and as traders have worried that sanctions on Russia will tighten supplies, crude oil prices have soared to start the year.

Outlook: We expect crude to trade higher towards 6760 levels, a break of which could prompt the price to move higher to 6800 levels.

BASE METALS

On Monday, lead and nickel slipped lower, whereas all the other metals ended on a higher note.

On increasing demand expectations in top consumer China, low stockpiles, and a weaker currency, copper prices headed back to seven-month highs reached last week.

Copper prices are also being supported by concerns about supplies coming from Peru as a result of social instability.

Following the Chinese holidays, demand for industrial metals in general is anticipated to increase as businesses restock in anticipation of an uptick in production activity.

Copper stockpiles at LME-registered warehouses are approaching 10-month lows reached in November, which traders are keeping an eye on.

Outlook: In light of developments in China, the world's largest consumer of metals, metal prices are predicted to remain high due to improving demand.

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