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

GOLD

The upward trend in the yellow metal continued, with bullion rising by almost 2%. Given the strength fin the prices, gold reached $1800.

The dollar index was on track to post a weekly loss and foreign buyers of dollar-priced gold benefited from a weaker dollar. Investors are presently anticipating the US Fed Reserve rates, which are anticipated this week, in order to get an idea of the pace of rate hikes.

The US trade gap notably widened as a result of lower global demand and a strong dollar, which caused goods exports to drop to a seven-month low in October.

China's exports and imports decreased in November at the fastest rate in at least two and a half years as a result of weak domestic and international demand as well as production disruptions caused by COVID.

Outlook: We expect gold to trade lower towards 53920 levels, a break of which could prompt the price to move lower to 53770 levels.

CRUDE OIL

After what seemed like a respite during the previous week, where prices ended on a higher note, snapping the negative trend, prices again succumbed to the negative factors.

During the week, oil fell to its lowest level of the year, giving up all of the gains it had garnered since Russia's invasion of Ukraine exacerbated the worst global energy supply crisis in decades. Oil prices fell to their lowest level of the year as a result of economic uncertainty and the possibility of rising interest rates. 

Strong economic data or hawkish signals from other policymakers are the sources of uncertainty on the trajectory of Federal Reserve rate hikes and rumors of an impending recession, which is fueling fears.

Oil prices increased after an incident that led to the suspension of a large Canada-to-US crude pipeline, the decline, however, seemed to be restrained.

One of the greatest crude oil spills in the United States in more than a decade, more than 14,000 barrels of crude oil spilled into a creek in Kansas as a result of the accident at TC Energy's Keystone pipeline in the United States. 

Outlook: The weakness in crude would continue to keep the prices under pressure, however, the downside looks limited in the near short term, on the back of the incident at a large Canada-to-US crude pipeline.

BASE METALS

The base metals' up-trend came to an end as metals like lead and aluminium ended on a less promising note. Due to high oil prices and rising interest rates, China's service sector activity has reached its lowest point in six months, and Europe's economy has also slowed.

The market was impacted by data showing that in November, China's exports and imports fell at their fastest rate in at least 2-1/2 years. As investors worried about a future US recession, the US dollar remained weak after falling versus major rivals for the first time in the previous week.

Metals which are priced in dollars are less expensive for holders of foreign currencies when the dollar is weak. According to data, China's sales of passenger cars fell in November for the first time in six months.

Prices fell from a high of $10,845 in March due to slowing growth in China and other parts of the world, however, the market currently anticipates a recovery.

Outlook: We expect copper to trade lower towards 698 levels, a break of which could prompt the price to move lower to 688 levels.

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