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GOLD

Post concluding the previous week on a higher note, prices of the yellow metal were off to a good start, as it extended the winning run. Spot gold on Monday ended with gains of 2,38 percent, closing at 1699.2$ per ounce.

Gold prices rose, approaching their three-week highs, as the dollar index continued to cool off following a significant one-sided movement.

The slowdown in US manufacturing activity was another factor supporting prices. In September, the US manufacturing sector expanded at its weakest rate in in two and a half years, as the Federal Reserve aggressively raised interest rates to curb inflation.

Outlook: We expect gold to trade higher towards 51500 levels, break of which could prompt the price to move higher to 51790 levels.

CRUDE OIL

The previous week saw nearly every commodity concluding on a positive note. Crude extended its gains, as on Monday both the benchmark indices ended on a positive note. Brent gained over 1 percent, whereas NYMEX surged over 5 percent.

Prices rose amid news that OPEC+ was set to agree to a significant reduction in crude output when it meets on Wednesday, but further gains were restrained by worries about the global economy.

Despite the ongoing tensions between Russia and Ukraine, which has led to a supply disruption had supported the prices. However, it was overshadowed by the demand prices that dragged the prices lower.

However, since unfavourable cues continue to restrict the upside, the 1 million barrels per day output reduction will probably sustain the prices in the short term.

Outlook: Crude prices to remain elevated on the back of improving demand from China, as lockdown restriction are being lifted.

BASE METALS

Despite the pullback witnessed in the dollart index on Monday, base metal prices failed to conclude on  apositive note, as prices ended mixed. On the LME, only Nickel and Aluminium managed to end higher, rest metals ended on a lower note, whereas on the MCX, Lead and Zinc ended on a negative note.

The dollar index started to decline from its recent highs, which would have provided some short-term support for copper prices. But then weakness returned.

The prices were kept under pressure by uninspiring manufacturing data from around the world and swelling stocks in warehouses registered by the London Metal Exchange.

Outlook: Metal prices are anticipated to be supported by expectations of increased Chinese demand, although the dollar index and sluggish industrial data would prevent further gains.

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