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GOLD

Post concluding the previous week on a sharply lower note, prices of the yellow metal inched up, as it ended Monday's session with marginals gains and closed at 1709$ per ounce, as the US dollar index took a breather in yesterday's session. However, investors await more cues about the Fed meeting which is to hold next week.

However the dollar is still lingering around its 20-year highs, and the demand for bullion will likely remain muted. On the other hand, the U.S. Treasury yields witnessed an uptick.

Although recent high inflation data might likely result in the Fed hiking interest rates by 100 basis points, Fed policymakers indicated on Friday that they would likely remain with a 75-basis-point rise at their forthcoming policy meeting.

Outlook: We expect gold to trade higher towards 50790 levels, a break of which could prompt the price to move higher to 51190 levels.   

CRUDE

Crude prices also ended the previous week on a negative note, however, they began the new week on a strong positive note as both the benchmarks ended with gains. Brent concluded with 3.49 percent gains, whereas the NYMEX ended with gains of 5.13 percent.

The breather in the US dollar saw the prices jump higher, as it supported buying interest. However, uncertainty looms over as to what the Fed's stance be in the wake of rising inflation.

Oil prices have been whipsawed between concerns as Western sanctions on Russian crude and fuel supplies have disrupted trade flows to refiners and end-users and growing fears that central bank efforts to contain surging inflation may lead to a recession, which would reduce future fuel demand.

Two U.S. Federal Reserve officials indicated last week that the central bank would likely raise interest rates by 75 basis points at its July meeting.

Outlook: Crude prices witnessed an uptick in yesterday's session, however, it is expected to remain under pressure on the back of a strong dollar amid rising inflation which leaves the US Fed to hike interest rates in the upcoming meeting.

BASE METALS

The base metals pack witnessed a bounceback on Monday's session, as on the LME, all the metals ended on a positive note, and on the MCX, except for Nickel all other metals ended in the positive territory.

Yesterday's session saw a decline in the dollar, which helped metal prices to recover. However, it is still trading slightly below its two-decade high, making greenback-priced commodities more expensive for holders of other currencies.

Prices were impacted by weak demand from China, a major consumer of metals, as a result of COVID-19 outbreaks and worries about an impending global recession.

In the first half of this year, China, the world's largest producer and consumer of aluminum imported 1.08 million tonnes of aluminum, a decrease of 25.9% from the same time a year ago. Relaxed power restrictions this year have eased aluminum supply tensions that were the main cause of price increases. 

Outlook: We expect copper to trade higher towards 640 levels, a break of which could prompt the price to move higher to 651 levels.