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

GOLD

Gold prices on Tuesday managed to buck the weaker trend and concluded on marginally positive note. Gold ended at 1770.9$ per ounce

Investors are currently waiting for the US Fed Reserve rates, which are expected next week, for clues of the rate hikes' speed.

This year, high interest rates have hurt gold's role as a conventional hedge against inflation and other concerns.

As a result of weaker global demand and a strong currency, which drove goods exports to a seven-month low in October, the U.S. trade imbalance increased significantly.

Outlook:Anticipation that the US Fed might hike interest rates will likely be a headwind for gold.

CRUDE OIL

Crude prices on Tuesday witnessed a sharp sell-off, as both benchmark indices, Brent and NYMEX ended on a lower note, down 5.34 and 3.48 percent respectively.

Due to economic uncertainties and the potential for increased interest rates, oil prices reached their lowest point of the year. Since late September, yesterday's plunge was the biggest daily decrease in Brent prices.

Uncertainty around the direction of Federal Reserve rate hikes and talks of a looming recession, which are raising fears, sparked by strong economic data or hawkish signals from other policymakers.

Outlook:We expect crude to trade lower towards 6290 levels, a break of which could prompt the price to move lower to 6170 levels.

BASE METALS

The base metals pack extend the mixed trading session to another day, as LME lead and Aluminium ended on a lower note, whereas on the MCX, only Lead ended lower.

Since the beginning of November, aluminium has increased by nearly 12%, mostly due to expectations for increased metals demand as China eases strict coronavirus restrictions that have slowed economic growth.

China's service sector activity has fallen to its lowest level in six months, and Europe's economies have slowed as a result of high oil prices and rising interest rates.

A stronger dollar index that followed its biggest two-week rise as a result of positive US services data that fueled prospects for rising interest rates also weighed on the market.

Outlook:Optimism on the Chinese front will likely keep base metal prices elevated, however, high interest rates would cap the upside.              

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