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Below is Gold Article by Mr. Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd.     

Gold prices dragged lower; Crude settles higher.

GOLD

Gold prices declined on Wednesday due to a strengthening U.S. dollar and rising U.S. Treasury yields.

The release of minutes from the Federal Reserve's June policy meeting confirmed the market's expectation that interest rates would remain higher for an extended period.

This development weighed on gold, as higher interest rates increase the opportunity cost of holding the non-yielding metal. Additionally, benchmark U.S. 10-year Treasury yields reached a four-month high, and the dollar gained 0.3% against other currencies.

Traders are currently pricing in an 89% probability of a 25-basis-point rate hike in the upcoming July meeting. The market is also closely monitoring China's export controls on semiconductor metals, as it escalates its technological rivalry with the United States.

Outlook: Due to the likelihood that the US Fed will increase interest rates at its upcoming meeting, gold prices are anticipated to be under pressure

CRUDE Oil

Oil prices traded near two-week highs but are down 10% this year due to concerns over China's slow economic recovery, global macroeconomic challenges, and central bank interest rate hikes.

Supportive factors include Saudi Arabia's supply curb announcement, expectations of further reductions, and a larger-than-expected drop in U.S. crude stocks.

However, China's sluggish services activity in June weighed on the demand outlook.

The Russia-Saudi oil cooperation within the OPEC+ alliance remains strong, with a commitment to supporting the market.

Outlook: We expect crude to trade higher towards 6010 levels, a break of which could prompt the price to move higher to 6070 levels.