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

GOLD

The yellow metal extended the weakness for a 2nd straight day, as prices slipped on early 2 percent to end at 1776.7$ per ounce

Because of predictions that the US Federal Reserve will raise interest rates for a longer period of time, gold prices were poised for a weekly loss.

As anticipated, the Fed increased interest rates on Wednesday by 50 basis points. Fed Chair Jerome Powell stated, however, that the central bank would continue to raise rates in 2023.

Outlook: We expect gold to trade lower towards 53800 levels, a break of which could prompt the price to move lower to 53580 levels.

CRUDE

Crude prices took a breather on Thursday, as both the benchmark crude indices ended with a 1 percent cut each.

The decline in crude prices was triggered by a forecast for fuel demand as a result of a stronger dollar and additional interest rate increases by global central banks.

The second-largest economy in the world, China, lost more momentum in November due to slowing factory output and retail sales that continued to decrease, the weakest figures in six months. These declines were hampered by an increase in COVID-19 cases and widespread virus bans.

A week after a spill of more than 14,000 barrels of oil in Kansas forced a closure, Canada's TC Energy announced it was resuming operations in a segment of its Keystone pipeline, further depressing oil prices.

Outlook: We expect crude to trade higher towards 6550 levels, a break of which could prompt the price to move lower to 6670 levels.

BASE METALS

All the metals ended on a lower note on Thursday, with LME Copper being the top losing metal, down 2.62 percent.

Copper prices dropped on Thursday as concerns over poor demand were stoked by disappointing industrial data from China and a US Federal Reserve warning of additional interest rate increases.

The dollar gained strength, pushing up the price of dollar-priced metals for buyers using other currencies.

The world's largest consumer of metals, China, saw its economy lose more momentum in November as a result of slower factory output and extended declines in retail sales.

Outlook: We expect copper to trade lower towards 694 levels, a break of which could prompt the price to move lower to 684 levels.

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