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

GOLD

Post witnessing a series of positive returns over the past few sessions, the yellow metal on Thursday retraced by over 1 percent, concluding the day at 1833.2$ per ounce.

Gold prices, meanwhile, were on course for a third consecutive weekly increase after falling more than 1%, with the market eagerly anticipating a crucial US employment data to determine the Federal Reserve's stance on rate hikes.

The anti-inflationary appeal of bullion is diminished when interest rates rise, and holding the non-yielding commodity has a higher opportunity cost.

Outlook: We expect gold to trade lower towards 55030 levels, a break of which could prompt the price to move lower to 54850 levels.

CRUDE OIL

Crude prices on Thursday, bounced back after cracking sharply lower the other day. The benchmark Brent index ended over 2 percent higher and NYMEX index ended with gains of 1 percent.

Lower fuel supplies as a result of a winter storm that battered the United States at year's end led to an increase in oil prices.

The world's largest importer of crude oil, China, abruptly changed its strict zero-COVID policy in the early days of December in response to infrequent public protests, which caused an increase in infections all across the country.

Outlook: We expect crude to trade higher towards 6280 levels, a break of which could prompt the price to move higher to 6380 levels.

BASE METALS

It was a mixed session for the industrial metals with copper being the top gaining metal on the LME as well as on the MCX. Whereas, LME Nickel was on the top losing front.

Copper prices increased amid expectations that China's attempts to strengthen its economy will increase demand for metals, but the gains were constrained by a stronger dollar and short-term concerns about the country's rising COVID-19 cases.

As part of Beijing's overall strategy to stabilise the economy following a harsh COVID-induced downturn, policymakers in China will use more support measures to boost demand this year.

Outlook: Metal prices are anticipated to remain high, as measure from the top consumer China in order to revive its economy will likely see a pick-up in demand for metals.

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