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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 after witnessing strong momentum in the previous sessions, took a pause, as prices dipped over half a percent. 

The cut in the prices came on the back of an uptick in the US dollar and bond yields. 

The Federal Reserve is likely to raise its benchmark rate a quarter of a percentage point at its policy meeting next week and again in May, as government data showed American inflation remained strong in February.

The CPI climbed by 6% in the year ending in February, which was the smallest year-on-year gain since September 2021.

Outlook: We expect gold to trade lower towards 56850 levels, a break of which could prompt the price to move lower to 56400 levels.
 

CRUDE OIL

Crude prices continued to take a beating, as Brent and NYMEX, both ended on a lower note with more than 2 percent and 4 percent cut. 

The ongoing weakness follows Silicon Valley Bank's failure, which has raised concerns about the possibility of a new financial crisis.

However, the downside was limited since OPEC increased the expectation for 2023 Chinese oil demand growth as a result of the country's COVID-19 limitations being loosened.

Further backing was provided by the energy minister of Saudi Arabia, who stated that the production curbs agreed upon by OPEC and its allies, including Russia in October, will be adhered through the end of the year.

Outlook: We expect crude to trade higher towards 6070 levels, a break of which could prompt the price to move higher to 6140 levels.
 

BASE METALS

In what was a mixed day for the metals pack on Tuesday, metals such as copper and zinc slipped over 1 percent each. 

The US inflation data released on Tuesday met expectations while remained higher, increasing bets on the Fed raising interest rates by a lower amount at its meeting in the following week.

In the wake of disastrous protests that have wracked the nation in recent months, mining exports from Peru, the second-largest producer of copper in the world, fell 19.8% in January when compared to a year earlier period.

Outlook: We expect copper to trade lower towards 766 levels, a break of which could prompt the price to move lower to 743 levels.

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