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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 are witnessing a volatile move, as the yellow metal on Thursday retraced over 1 percent to end below $1800.

After US economic numbers revealed that the country's economy recovered more quickly than expected in the third quarter, rising 3.2% as opposed to the previously predicted 2.9%, gold declined as the dollar strengthened.

As inflation decreased, US consumer confidence increased more than anticipated to its highest level since April.

Outlook: We expect gold to trade lower towards 54110 levels, a break of which could prompt the price to move lower to 53820 levels.

CRUDE

On Thursday, crude prices witness yet another mixed session, as the benchmark Brent managed to conclude the day on a higher note, whereas the NYMEX ended on a lower note.

Concerns that an impending Arctic storm across the United States could stifle the surge in transport fuel demand this holiday season outweighed forecasts that Russian oil exports from the Baltic region would decline in December, leading to a rise in Brent.

Following the imposition of sanctions and a price ceiling on Russian crude by the G7 and the European Union, Russia's exports of oil to the Baltic region might decline by 20% in December compared to the previous month.

Gains in oil prices were, however, constrained by an increase in COVID-19 cases on the mainland, worries about more rate increases globally, and a recession that reduced fuel usage.

Outlook: Given the confidence regarding demand and a lower dollar, which makes it less expensive for holders of other currencies, crude prices are expected to remain high. The rising number of Covid-19 cases in China, however, might curb the upside.

BASE METALS

The base metals pack largely ended on a negative note, as Zinc was the top loser on the LME as well on the MCX.

On the other side, copper prices dipped on Thursday due to an escalating coronavirus outbreak in China, the biggest user, which reduced demand and strong US economic data that showed interest rates may stay higher for longer, slowing growth.

Prices increased significantly in November as markets started to prepare for the end of US interest rate increases and China started to abandon its harmful zero-COVID policy.

Furthermore, while China's loosening may in the long run increase demand, it has also allowed the virus to spread throughout the nation, disrupting commerce.

Outlook: We expect copper to trade lower towards 704 levels, a break of which could prompt the price to move lower to 694 levels.

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