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

Gold retraces from highs, Crude ticks higher

GOLD

Post the strong momentum seen in the last few sessions, the yellow metal took a breather on Monday, as prices corrected nearly half a percent.

The uncertainty that led gold prices to spike through the roof, somewhat clamed, as investor sentiments turned towards the Federal Reserve policy meeting, hopes mounted that the US central bank could suspend rising interest rates.

Gold prices had shot up to their highest level since March 2022, before retreating, as investors digested the impact of measures taken by several central banks to contain a banking crisis.

Outlook: When there is market uncertainty, gold tends to rise. Yet, with the current banking crisis scenario easing, gold prices may retrace with the US Fed's rate hike decision on the horizon.

CRUDE OIL

The benchmark crude index, NYMEX showing sign of revival, after slipping to 1-year lows, continued to move higher, whereas, BRENT continues to slip further.

The recent banking crisis sparked alarm among investors, who were concerned that recent banking-sector troubles would weigh on the global economy and decrease demand for crude.

Prices rose following a historic agreement in which UBS, Switzerland's largest bank, agreed to buy Credit Suisse in an effort to salvage the firm.

Following the announcement of the accord, major central banks such as the US Federal Reserve and the European Central Bank stated that they would increase market liquidity and assist other banks.

Outlook: We expect crude to trade lower twards 5390 levels, a break of which could prompt the price to move lower to 5260 levels.

BASE METALS

On Monday, the base metals pack climbed higher, as most of the metals ended on a higher note.

Copper's gains were aided by a weaker currency and hints of improved demand from major customer China.

Concerns about the banking crisis were alleviated slightly with UBS Group's state-backed takeover of Credit Suisse.

Outlook: Metal prices are expected to rise as a result of the easing of banking crisis. Nevertheless, if the Fed hikes interest rates, metals' upside will be restricted.

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