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

Gold sees uptick; Crude remains subdued.

GOLD

Gold prices saw a modest uptick on Monday as the dollar and bond yields retreated. The dollar's dip against other currencies rendered gold relatively more affordable.

Additionally, the 10-year Treasury yields remained below recent highs. The forthcoming U.S. economic data, including the personal consumption expenditures price index report and August nonfarm payrolls data, is eagerly anticipated for insights into the interest rate trajectory.

Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole gathering suggested the possibility of further interest rate hikes to tackle persistent inflation.

Such moves could elevate bond yields, potentially making gold less appealing due to its lack of yield. Investor sentiment currently reflects a 56% likelihood of an additional rate hike in 2023, with a 40% probability of unchanged rates for the remainder of the year.

Outlook: We expect gold to trade higher towards 58960 levels, a break of which could prompt the price to move higher to 59020 levels.

CRUDE OIL

Oil prices faced a minor dip, poised for a weekly decrease due to subdued manufacturing activity impacting global demand and the steadiness of the dollar. The week marked a consecutive 2%-3% decline in crude values.

As anticipation surrounded Federal Reserve Chair Jerome Powell's forthcoming remarks at the Jackson Hole Symposium, the safe-haven dollar surged to a 10-week pinnacle, deterring demand as a robust dollar amplifies oil costs for other currency holders.

The week's trajectory was influenced by dwindling factory activity across economies, including Japan, the Eurozone, and the UK.

India's oil consumption growth decelerated due to inflation and sluggish global trade, while Iran projected increased crude output despite lingering U.S. sanctions.

Outlook: We expect crude to trade lower towards 6430 levels, a break of which could prompt the price to move lower to 6350 levels.

BASE METALS

Copper prices retreated due to concerns over elevated interest rates constraining worldwide growth, countering the positive outlook for demand in China, a major metals consumer.

Despite this, copper prices on the Shanghai Futures Exchange (SHFE) reached a nearly three-week peak, driven by expectations of increased demand supported by policy measures and the upcoming high-consumption season in China.

The resilience of the dollar exerted pressure on metals values, with investors adopting a cautious stance in anticipation of the Federal Reserve's Jackson Hole symposium.

A robust dollar renders commodities priced in USD more costly for those using other currencies. The symposium follows a series of rate hikes that have dampened economic expansion and metal demand.

Outlook: We expect copper to trade higher towards 738 levels, a break of which could prompt the price to move higher to 740 levels

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