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

GOLD

After being under pressure and a series of negative returns, gold prices snapped the losing streak and concluded Tuesday's session on a positive note. The yellow metal ended Tuesday's session at 0.14 percent higher.

The US Federal Reserve raised interest rates by 75 basis points for the fourth time earlier this month, and now investors are waiting for the minutes of the meeting to see if there will be any more rate increases.

Although gold is regarded as an inflation hedge, rising US interest rates reduce the appeal of non-yielding bullion.

Outlook: We expect gold to trade lower towards 51990 levels, a break of which could prompt the price to move lower to 51780 levels.

CRUDE Oil

Crude prices post a sharp fall on Tuesday, and witnessed a BounceBack, as prices recovered from the sharp sell-off, recouping the losses to end higher.

The benchmark Brent closed almost 8% higher, while the NYMEX closed 1.53% higher.

Prices rose substantially as a result of data from the industry that revealed US crude stocks declined more quickly than anticipated, underscoring supply constraints in front of an impending embargo on Russian oil by the European Union and a price restriction by the G7.

Outlook: We expect crude to trade higher towards 6870 levels, a break of which could prompt the price to move lower to 6980 levels.

BASE METALS

The base metals pack on Tuesday witnessed a BounceBack as most of the metals ended on a higher note, except for LME Lead, whereas on the MCX, Lead and Zinc were the only losers.

Growing COVID-19 cases in China, the top consumer of metals, are raising concerns about how tighter economic restrictions would affect global growth. T the dollar retreated across the board ceding some of the ground gained in the previous session. 

In contrast, investors sought additional hints regarding US interest rates prior to the release of the minutes from the most recent Federal Reserve meeting.

Outlook: We expect copper to trade lower towards 667 levels, a break of which could prompt the price to move lower to 657 levels.

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