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

GOLD

Amidst the recent weakness seen in gold prices, on Thursday the prices witnessed a BounceBack from the levels to end with nearly 1 percent gains.

As data revealed that US weekly unemployment claims increased more than anticipated, the dollar declined as investors hoped that a deteriorating labour market would allow the Federal Reserve to raise interest rates more gradually.

However, due to the rise in the dollar index this week and expectations of further rate hikes, gold is anticipated to end the week with a loss of over 1%.

Although gold is regarded as an inflation hedge, the demand for zero-yield metal tends to decline when interest rates rise.

Outlook: We expect gold to trade lower towards 54650 levels, a break of which could prompt the price to move lower to 54460 levels.

CRUDE OIL

The benchmark crude index NYMEX, continues to extend the losing momentum, as it ends 1.23 percent lower.

Traders continued to be wary of the US Federal Reserve raising interest rates further, which worries have caused energy prices to crash during the past several days.

The prospect of further rate increases in the country with the highest oil production and similar comments made over the weekend by the president of the European Central Bank have thrown doubt on global growth, positioning oil for a weekly decline following two weeks of gains.

Low unemployment and steady job growth might boost consumers' overall purchasing power and lead to inflation. Higher interest rates used by central banks to combat inflation eventually slow down the economy.

Outlook: Prices are predicted to stay under pressure as a result of forecasts that the US Federal Reserve would keep raising interest rates and rising crude stock levels.

BASE METALS

The base metals pack on Thursday settled on a lower note, among which the NIckel was the top losing metal, ending with over 2 percent cut.

In a similar manner, copper prices also traded in the negative territory and were headed for a weekly fall due to increased supplies and concerns about the US Federal Reserve continuing to raise interest rates.

Concerns about the state of the economy and the demand for industrial metals on a worldwide scale were heightened by remarks made by Federal Reserve Chairman Jerome Powell regarding future rate hikes intended to combat persistently rising inflation.

Improved situations in Peru, Indonesia and Panama eased supply worries, although Fitch Ratings issued a warning about a potential shortage of supplies and problems getting ore to ports in Peru, improved conditions in Peru.

Outlook: We expect copper to trade lower towards 744 levels, a break of which could prompt the price to move lower to 736 level

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