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GOLD

Contrary to how investors would have preferred, gold started the year off slightly lower after ending the previous year on a high note. On Monday, the bullion ended 0.04 percent lower and ended at 1823.7$ per ounce.

The US Fed's December policy meeting minutes are currently the focus of the market since they may provide information on the direction of the central bank's tightening. However, following four consecutive rises of 75 basis points each, the Fed increased rates by 50 bps in December.

The head of the International Monetary Fund forecasts that 2023 will be a difficult year since the main forces behind global growth—the US, Europe, and China—are seeing their activities slow down.

Outlook: We expect gold to trade higher towards 55430 levels, a break of which could prompt the price to move higher to 55640 levels.

CRUDE

 The benchmark crude index, Brent, began 2023 with strong gains, mirroring how crude finished the previous year on a high and extended the winning streak for the second year in a row. The trading for the other benchmark index, the NYMEX, remained shut.

Prices have risen to their highest levels in more than a month, but it is probable that the gains will be limited since the director of the International Monetary Fund has warned of a harder 2023 because of weaker growth in major nations.

Despite an increase in COVID-19 infections in China, the world's top crude importer, some people returned to their regular activities on Monday, raising the prospect of a boost to the economy and oil demand as more recover from infection.

Outlook: Given the optimism regarding Chinese demand, crude prices are likely to remain high. However, the upside is expected t remain capped after the warning from the IMF.

BASE METALS

After experiencing a dream run in 2021, the base metals pack's surge came to a complete halt in 2022 due to the metals' significant underperformance, with the exception of nickel, which finished higher.

According to the nation's statistics agency INE, copper production in Chile, the world's top producer of metal, decreased 5.5% year over year to 459,229 tonnes in November. The drop came on the back of operational problems affecting major companies. 

The leading copper producer in the world, Chile is also home to major corporations including Codelco, BHP, Glencore, Anglo-American, Freeport, and Antofagasta.

According to INE, the Andean nation's manufacturing output decreased by 7.8% in the month. This comes after a 9.2% decline in October.

Outlook: We expect copper to trade higher towards 730 levels, a break of which could prompt the price to move higher to 741 levels.

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