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

Gold heading towards weekly gain, Oil rebounds over demand optimism.

GOLD

Gold prices on Tursday remained subdued, as the yellow metal concluded the trading session on a lower note, down 0.15 percent to end at 1789.5$ per ounce.

A rise in Treasury yields and expectations of US interest rate hikes pushed down gold prices on Thursday, but broader dollar weakness left bullion on track for a weekly gain.

Benchmark US 10-year Treasury yields which were hovering near a three-week peak, limited the upside in gold, increasing the opportunity cost of holding non-interest-bearing gold.

The dollar was probably headed for a weekly loss relative to its rivals, as a weaker greenback makes dollardenominated gold less expensive for other currencies.

Outlook:Although the geopolitical unrest may cause gold prices to rise, the expectation that the US Federal Reserve will raise interest rates at its upcoming meeting will be a significant headwind for the yellow metal.

CRUDE

On Thursday, crude prices witnessed a bounceback as both the benchmarks ended the day with gains of nearly 3 percent. Brent gained 3 percent as NYMEX ended gaining 2.62 percent

Oil prices rose as benchmarks were likely heading for a weekly rise as concerns about a recession subsided amid demand projections that were uncertain due to divergent opinions from OPEC and the International Energy Agency.

In contrast to the IEA, which increased its forecast for demand growth, to 2.1 million bpd, due to gas-to-oil switching in power generation as a result of skyrocketing gas prices, the Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per day on Thursday.

Outlook:We expect crude to trade lower towards 7420 levels, break of which could prompt the price to move lower to 7280 levels

BASE METALS

The industrial metals pack ended the previous session on a positive note, as the metals on the LME and on the MCX ended with gains. On the LME, Nickel emerged as the top gainer, whereas Zinc was the top gainer on the MCX.

On Thursday, copper prices reached a six-week high as the dollar dropped due to expectations that the US Federal Reserve will slow the rate of interest rate increases, making metals with dollar prices more affordable for buyers using other currencies.

The metal used in building and power generation are up roughly 17% from a low but are still down 25% from a peak in March due to slower economic growth and demand.

The US data released during the week suggested that inflation may be peaking, which would lessen the need for rate rises that would impede economic growth and metals demand. nvestor confidence was boosted by the report, but Fed policymakers warned they would keep tightening the purse until pricing pressures were completely relieved.

Outlook:We expect copper to trade higher towards 690 levels, break of which could prompt the price to move higher to 701 levels.

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