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

Gold extends weakness; Crude slips sharply.

GOLD

Gold prices fell on Monday, following the weakness seen in the previous week, as the currency strengthened and US Treasury yields increased, making gold more expensive to global purchasers and less enticing as a zero-yielding investment. 

This week's focus will be on inflation data, central bank meetings, and the Federal Reserve's actions. Market sentiment implies that a pause in rate hikes, combined with a hawkish Fed statement, might dramatically boost gold prices. 

Current predictions show a 76% chance of no change in rates and a 71% chance of a raise in July. The European Central Bank and the Bank of Japan's actions will also have an impact on gold. 

Outlook: Given the stronger dollar and the anticipated US inflation data, gold prices are likely to remain under pressure, potentially limiting the yellow metal's upside.

CRUDE OIL 

Crude prices fell sharply on Monday, with both the major indices, Brent and NYMEX, falling more than 4%. 

Prices fell on Monday due to concerns about expanding global supplies and probable demand growth challenges, which coincided with significant inflation data and the Fed's monetary policy meeting. 

The downward impact on oil prices is exacerbated by China's stumbling economic recovery, as dismal economic data has increased fears about demand growth. 

Market participants anticipate that the Fed will keep interest rates unchanged, but the European Central Bank may raise rates to address inflation concerns. Meanwhile, the Bank of Japan is likely to keep its supportive policy in place. 

Outlook: We expect crude to trade higher towards 5780 levels, a break of which could prompt the price to move higher to 5670 levels.

BASE METALS

Base metals began the week lower as prices fell ahead of the US Federal Reserve's rate announcement and a stronger dollar. 

However, positive factors like as rate reduction and stimulus prospects in China, the world's largest consumer of base metals, offset the dip. 

Strong expansion in China's renewable energy and automobile sectors, both of which utilize a significant amount of copper, offered assistance. According to Chinese state media, non-fossil fuels currently account for more than half of the country's electricity-producing capacity. 

While the market remains cautious as a result of central bank meetings and the influence of the dollar, the base metals market benefits from China's hopeful renewable energy and automotive industries, providing some resistance to the recent price decrease.

Outlook: Since the US Fed is projected to postpone rate hikes, metal prices are expected to stay high in the near future. In addition, the announcement of China's stimulus plan will have a significant impact on the direction of future trends.

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