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A slew of economic data and market worries that interest rates may stay higher than anticipated have caused gold to keep rising.

High interest rates make gold less desirable as an inflation hedge and make it more costly to hold the non-yielding asset.

Although new orders increased from a more than 2-1/2-year low, there were hints that factory activity was rising even though US manufacturing shrank for a fourth consecutive month in February.

Outlook:

The US Fed's rate hike trajectory will likely see the dollar's resurgence, eventually limiting the upside in the yellow metal.

CRUDE

As data revealed that manufacturing activity in China surged at the quickest rate in more than ten years in February, adding to the indications of an economic recovery after the removal of harsh COVID-19 curbs, benchmark crude indices increased by over 1% before finishing on a neutral note.

The NYMEX, however, extended its gains from the previous two sessions as a result of indications of a robust economic recovery in China.

The market's gains were however limited by a tenth straight week of crude stock building in the United States.

Outlook:

We expect crude to trade higher towards 6500 levels, a break of which could prompt the price to move higher to 6610 levels.

BASE METALS

After experiencing a hiccup in the previous session, the base metals pack were back to full strength. Zinc emerged as the top gainer. 

After data from China, the world's largest consumer of metals, revealed that factory activity increased in February at the quickest rate in more than ten years, the metals saw strong momentum.

The dollar's decline in value, which made dollar-priced metals more affordable to buyers using other currencies, had a positive impact on metal prices as well.

Concerns about the availability of copper on a global scale decreased as Freeport Indonesia announced it had resumed operations at its Grasberg mine following flooding, and a settlement between Panama and First Quantum, which had halted ore processing at its mine there, was close to being reached.

Outlook:

The resurgence in Chinese demand is expected to keep base metal prices high, but an upsurge in the dollar and expectations of a Fed rate hike would limit the gains.