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GOLD

After hitting two-week highs, gold prices on Thursday saw a slight decline, with prices ending the day 0.09 down and closing at 1662.9$ per ounce.

Given recent negative economic data raised hopes that the Fed Reserve could slow down its pace of interest rate hikes, relieving the pressure on gold, the yellow metal was on course for the second week of gains.

While the US Treasury fell below 4 percent and the US Dollar Index held stable near 3-week lows, gold prices have been hovering around 2-week highs.

Outlook: The prices of the yellow metal are expected to remain elevated given the anticipation that the US Fed would begin to slow down its pace of hiking the interest rates.

CRUDE

Crude prices continue to rise as both benchmark crude indices, Brent and NYMEX, close the session with gains of more than 1%.

The indices were on track for a weekly gain on the back of worries about a tightening of the supply as well as the impending Russian import ban in Europe.

The third quarter saw a significant recovery for the US economy, amid a declining trade deficit, proving the resilience of the world's largest economy and top oil consumer.

Outlook: Crude prices remain higher, given the tighter supplies and a pick up in demand from the largest importer, China.

BASE METALS

The metals pack on Thursday witnessed selling as most of the metal ended on a lower note, except for Nickel and Zinc on the MCX.

More coronavirus restrictions in top metals consumer China, a stronger currency, and rising aluminum inventories weighed on copper and aluminum prices, giving up previous session gains.

In an effort to combat an unprecedented rise in inflation, the European Central Bank increased interest rates by 75 basis points on Thursday and announced plans to reduce its excessive balance sheet.

Outlook: We expect copper to trade higher towards 673 levels, a break of which could prompt the price to move higher to 684 levels.

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