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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 concluding on a lower note in the previous week, gold prices continued to witness a dip on Monday, concluding at 1922.5$ per ounce.

Ahead of the US Federal Reserve's policy decision, traders avoided placing any large bets. The central bank is anticipated to limit rate increases to 25 basis points (bps).

On the other hand, the European Central Bank (ECB) and the Bank of England (BoE) are also anticipated to increase interest rates by 50 basis points.

Outlook: We expect gold to trade lower towards 56920 levels, a break of which could prompt the price to move lower to 56830 levels.

CRUDE OIL

Crude also continued its pullback from the previous week, as both the benchmark crude indices Brent and NYMEX ended with a cut of 1 percent and 2.23 percent respectively.

Threats of interest rate increases, which might slow the global economy and diminish oil demand, as well as ongoing Russian oil supply to the global market in defiance of a European Union embargo and a G7 price restriction imposed over its invasion of Ukraine, all put pressure on oil prices.

The OPEC+ ministers are scheduled to meet this week, and it is anticipated that the group will maintain its existing output policy after deciding in October to reduce its production target by 2 million barrels per day, or about 2% of global demand, from November through the end of 2023.

Outlook: We expect crude to trade lower towards 6350 levels, a break of which could prompt the price to move higher to 6280 levels.

BASE METALS

On Monday, the base metals pack largely ended on a lower note, except for Nickel and Zin, which managed to end in the positive territory.

Concerns over the future of demand dominated sentiment ahead of data from China's manufacturing sector.

Copper hit a seven-month high earlier this month as speculators piled in after China removed its COVID-19 restrictions.

This week's surveys of purchasing managers in China's industrial sector will provide information about demand prospects.

The zinc market is currently focused on decreasing warehouse supplies that have been approved by the LME, which are at their lowest levels since 1989.

Outlook: We expect copper to trade lower towards 774 levels, a break of which could prompt the price to move lower to 764 levels.

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