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

Gold slips below $2000; Crude ends marginally lower.

GOLD

On Tuesday, gold prices witnessd a sharp pullback, as it fell below $2000 mark after US economic data and hawkish remarks from Federal Reserve officials drove bets that interest rate cuts may be delayed, while traders kept an eye on the U.S. debt-ceiling talks.

High interest rates dull non-yielding bullion's appeal, although it's considered a hedge agHigh interest rates reduce the appeal of non-yielding gold, notwithstanding its value as a hedge against economic uncertainty.

Retail sales in the United States climbed less than predicted in April, but the underlying trend was strong, causing the dollar to rise and 10-year Treasury yields to reach a two-week high.

US central bankers signalled on Monday that interest rates will remain high, if not rise, given inflation may slow down to improve the economy showing only tentative signs of weakness.

Outlook: We expect gold to trade lower towards 59760 levels, a break of which could prompt the price to move lower to 59510 levels.

CRUDE

Crude prices inched marginally lower, as both benchmark indices were down over 0.30 percent each.

Traders were wary after a surprising increase in US oil stocks fueled demand fears following weaker-than-expected economic data from the US and China.

Debt-ceiling talks in the United States continue to weigh on the market. The US Treasury Department has calculated that if Congress does not raise the debt ceiling by June 1, the country will enter a devastating default.

Outlook: Uncertainties around crude eventually weigh on the price and cause it to decline.

BASE METALS

The base metals pack continue to witness weakness, as all the metals concluded on a lower note, with copper being the top losing metal.

Copper prices fell to their lowest level since late November due to fears about demand in China, the world's largest metals consumer.

Aluminium demand has fallen in recent weeks in Europe and top user China due to a weakening global economy, increasing the likelihood of more price declines.

Outlook: We expect copper to trade lower towards 707 levels, a break of which could prompt the price to move lower to 701 levels.

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