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Below is Commodity Article by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

GOLD

Gold continued to extend the loss from the previous week, as the yellow metal settled Monday's session on a negative note, down 0.47 percent ending at 1733.7$ per ounce.

As the dollar soared to its highest level in 20 years, limiting demand for bullion priced in dollars, gold prices nearly fell to a nine-month low. For buyers holding other currencies, gold is now more expensive as it hovers close to its recent 20-year high. During Monday's session, gold prices fell to their lowest point since September.

Investors are eagerly awaiting the monthly inflation data that could have an impact on the Federal Reserve's decision to raise interest rates in the future.

Outlook: We expect gold to trade lower towards 50200 levels, break of which could prompt the price to move lower to 49780 levels.   

CRUDE

The benchmark indices witnessed a mixed closing, as Brent managed to end with 0.24 percent marginal gains, whereas the NYMEX crude ended 0.67 percent lower.

Fresh COVID-19 restrictions in China, the largest crude importer in the world, and concerns about a worldwide economic slowdown weighed on the outlook for oil demand, which led to a decline in prices on Monday.

Despite the precarious state of the supply-demand balances at the moment, growing recessionary fears and persistently weak Chinese demand are driving down oil prices.

After a Russian court overturned an earlier decision stopping operations at the pipeline for 30 days on Monday, concerns about a disruption to the Caspian Pipeline Consortium's (CPC) system decreased.

Outlook: We expect crude to trade higher towards 8380 levels, break of which could prompt the price to move higher to 8490 levels.   

BASE METALS

Post concluding the previous week on a negative note, the base metals pack witnessed a mixed session on Monday. Except for Nickel and Lead, all the other metals on the LME ended on a negative note, whereas, on the MCX, all metals ended in the red.

China's copper cathode output in June was little changed from May, as production at the 22 smelters evaluated, accounts for 83 percent of China's total capacity.

Smelters in the northwest and east started planned maintenance last month, and some of them lengthened their break due to weak profit margins in the world's top copper smelting nation.

Last Thursday, copper prices fell to 20-month lows as persistent worries about a recession slowed metals demand.

Outlook: We expect copper to trade lower towards 641 levels, break of which could prompt the price to move lower to 631 levels.   

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