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

                 Gold shines brighter, Crude oil extends worries

GOLD

Gold prices this week continued to surge northwards, as prices are nearing the $2000/ounce mark. 

Bullion this week gained nearly 4 percent given the rising uncertainty in the global markets due to the banking crisis. 

For the third week in a row, gold has increased in price as demand for safe-haven assets surged due to the US banking crisis. 

Prices continued to head higher as the appeal of non-yielding gold increased because of predictions of less aggressive Federal Reserve rate increases following the failure of two significant US regional banks. 

Gold bullion prices in euros also rose to levels not seen since records were set last year, while gold prices in pounds reached a new high. The CPI, on the other hand, had a 6% increase in February, which was the smallest increase from the previous year since September 2021. 

The European Central Bank adhered to its goal to raise interest rates by 50 basis points in order to combat inflation.

Outlook: We expect gold to trade higher twards 60150 levels, a break of which could prompt the price to move higher to 60790 levels.

CRUDE OIL

Crude prices continued to decline the following week after recording a loss the previous week. The benchmark NYMEX closed with a drop of around 11%. 

After a banking crisis caused a sell-off in international markets this week, prices were down for the second consecutive week, and with this steep down-move, prices plunged to 1-year lows.

The failure of two US banks and the frantic efforts of the Swiss government to support bank liquidity increased the pressure on oil. 

The worry about Credit Suisse, however, tempered expressions of confidence as China's economic activity increased in the first two months of 2023. 

Also, throughout the course of the week, oil stocks rose by almost 1.2 million barrels.

Outlook: Crude prices are expected to remain under pressure, given the uncertainty around the banking crisis and the growing crude stockpiles, which would keep upside limited.

BASE METALS

The weakness from the previous week was extended further, as metal prices stayed under pressure. However, Lead managed to overcome the weakness and end on a positive note. 

The US-based Silicon Valley Bank's collapse and the ensuing fall of Credit Suisse shares had a significant effect on the global market, which put pressure on metal prices. 

Positive sentiments were overshadowed by negative ones as the improvement in Chinese economic activity in the first two months of 2023 did not result in a rise in metal prices. 

The US inflation data, which was released on Tuesday, exceeded expectations while remaining higher, raising the likelihood that the Fed will raise interest rates by less than expected when it meets the following week. 

Prices did, however, find some support as a variety of rescue measures were put in place to stop a banking crisis, allaying investors' concerns.

Outlook: We expect copper to trade lower towards 748 levels, a break of which could prompt the price to move lower to 742 levels.

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