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GOLD

On Monday gold prices continued to slip on a lower note, as the yellow metal ended with over 1 percent cut and closing at 1621.6$ per ounce.

As gold prices held close to a 2-1/2-year low on predictions of further policy tightening by the U.S. Federal Reserve in its efforts to rein in growing inflation, the dollar index, which is at all-time highs, continued to be under pressure.

Following Russia's invasion of Ukraine, global economic growth is slowing more than anticipated, as major economies are in risk of entering recession due to the energy and inflation crises.

Outlook:We expect gold to trade lower towards 48830 levels, break of which could prompt the price to move lower to 48410 levels

CRUDE

The pressure in the overall commodities segments persists, as oil prices continue to move southwards, as both the benchmark indices, Brent and NYMEx ended on a lower note, down 0.77 and 2.58 percent.

Gains were limited by uncertainty regarding supply interruptions brought on by the Russia-Ukraine conflict and tightening monetary policy globally that raises the prospect of economic downturns.

Following unprecedented production cuts implemented in 2020 as a result of demand damage brought on by the COVID-19 pandemic, OPEC+ has increased output this year. The organisation did not, however, achieve the expected output gains in recent months.

The dollar rose to a two-decade high against a basket of  currencies, supported by sterling's slide and the euro's new 20-year low.

Outlook:We expect crude to trade lower towards 6220 levels, break of which could prompt the price to move lower to 6080 levels.

BASE METALS

The industrial metals witnessed a broader sell-off as all the metals on the LME and on the MCX ended on a negative note.

On Monday, copper prices hit two-month lows as a sell-off was prompted by worries about a global recession, less demand, a stronger currency, and rising stocks in LME registered warehouses.

The dollar index a against a basket of other major currencies is near its highest since May 2002, making dollar-denominated commodities more expensive for holders of other currencies.

Production reductions in Europe brought about by record-high energy prices exacerbated supply concerns.

Outlook:We expect copper to trade lower towards 620 levels, break of which could prompt the price to move lower to 610 levels.

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