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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 ending the previous week on a higher note, price of the yellow metal slips on Monday, as gold snap its winning streak, ending 0.86 percent lower, at 1781.2$ per ounce.

Investors remain cautious ahead of a busy week as attention turns to US inflation data and the Federal Reserve's decision on its monetary policy.

At its final meeting of 2022, the US central bank is largely predicted to raise interest rates by 50 basis points. Since the opportunity cost of owning the non-yielding asset reduces with lower rates, bullion generally benefits.

Outlook: We expect gold to trade lower towards 53890 levels, a break of which could prompt the price to move lower to 53720 levels.

CRUDE

Crude prices bouncedback after slipping to their lowest since December 2021, with both the benchmark crude indices managing over 1 percent gains. Brent gained 1 percent, whereas the NYMEX was up over 3 percent.

An major pipeline that supplied the United States was closed, and Russia threatened to reduce production, which contributed to the rise in oil prices. At the same time, China's easing COVID-19 limitations improved the outlook for fuel demand.

The disruption is anticipated to reduce supply at the Cushing, Oklahoma storage facility and delivery location for US benchmark crude oil.

Outlook: After the closure of a major pipeline, supply issues may lead crude prices to stay high. The upside might, however, still be limited.

BASE METALS

The base metals on Monday ended on a lower note, as nearly all the metals ended lower, with LME Aluminium being the top loser, whereas, Nickel and Zinc managed to end higher.

However, as China, the world's largest buyer of metals, struggles with new COVID-19 cases and concern over US interest rate hikes, copper prices have fallen by over 2 percent.

To reduce illnesses and their effects on production, many metal manufacturers in China have chosen to keep COVID restrictions in their facilities.

Also hitting sentiment was uncertainty on whether the U.S. Federal Reserve would slow the rate of interest rate increases at its policy meeting this week.

Outlook: We expect copper to trade lower towards 692 levels, a break of which could prompt the price to move lower to 682 levels.

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