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Gold subdued ahead of US Fed decision, Crude settles lower over growth worries.

GOLD

Gold remained stable during the week, swinging between the US Fed's rate hike fears and the uncertainties surrounding the US banking crisis. 

Bullion prices started the week on an upbeat note, rising half a percent thanks to a weaker dollar. Prices have remained steady near the $2000 mark. 

However, the much-anticipated US Fed meeting next week will likely determine the yellow metal's future direction, following a likely 25 basis point hike. 

Furthermore, towards the end of the previous week, the banking crisis in the United States worsened, raising hopes of a halt in interest rates, which helped gold remain off the lows. 

Outlook: We expect gold to trade lower towards 59480 levels, a break of which could prompt the price to move lower to 59280 levels.

CRUDE OIL

Crude prices continue to fall as the benchmark NYMEX falls 2.5 percent, adding to the previous week's losses. 

Crude began the week on a positive note, with prospects of recouping losses, as holiday travel in China is expected to boost demand in the world's top oil importer. 

Further, support seemed to be coming from the EIA report, which showed that US oil inventories fell in the previous week. However, concerns about global central banks raising interest rates, which will slow economic growth and eventually reduce energy demand, continue to loom over crude prices. 

Furthermore, consumer sentiment in the United States fell to a nine-month low in April, fueling fears of a recession.

Outlook: We expect crude to trade lower towards 6050 levels, a break of which could prompt the price to move lower to 5960 levels.

BASE METALS

The base metals pack continues to witness weakness, with nearly all metals ending lower for the week ended, with the exception of LME Lead, which ended modestly higher. 

The week began on an unfavorable note for base metals, as all concluded on a downward trend. 

Copper prices fell to 6-week lows as the market focused on sluggish demand in the main consumer China, a stronger dollar, and a major increase in stockpiles in the London Metal Exchange (LME) warehouse system. 

During the week, however, prices found some support from a falling dollar, following new signs of a US economic slowdown as orders for core capital goods fell more than expected in March. 

In terms of supply, Chinese copper product makers have declared that output will be reduced during the second quarter, normally the peak demand season, due to a slower-than-expected rebound in domestic consumption.

Outlook: Metal prices are projected to stay under pressure following China's unexpectedly weak manufacturing output in April, as well as the US Fed's upcoming interest rate hike.

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