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GOLD

Gold prices witnessed a volatile trading session on Tuesday, however, they settled the day on a marginally negative note, down 0.14 percent to close at $1817.1

Benchmark U.S. 10-year Treasury yields inched down, making non-yielding gold more appealing. Since the dollar is moving closer to recent two-decade heights and is expected to record its best quarter in more than five years, making gold less desirable to buyers with foreign currencies.

Gold prices have plummeted around 6% this quarter, to their lowest level since the first quarter of 2021, after leading central banks adopted tough measures to combat runaway inflation. Prices are expected to decrease for a third consecutive month.

Outlook: We expect gold to trade lower towards 50290 levels, a break of which could prompt the price to move lower to 49870 levels.   

CRUDE

Crude prices extended their winning momentum during Tuesday's session, as Brent ended with gains of 1.38 On Wednesday, Brent crude continued its northward journey, as it ended with 1.25 percent gains, however, NYMEX crude slipped lower, down 1.77 percent.

NYMEX crude fell over 1 percent as markets took into account an increase in gasoline and distillate inventories as well as concerns about slower economic growth and a possible supply shortage.

According to the Energy Information Administration (EIA), despite refiners increasing activity and industry production reaching its highest level in more than two years in response to a limited global supply and high prices, U.S. crude stocks fell in the most recent week while fuel inventories increased.

Prices were also under pressure from a rising dollar since it makes oil more expensive for buyers using other currencies.

Outlook: We expect crude to trade lower towards 8660 levels, a break of which could prompt the price to move lower to 8520 levels.   

BASE METALS

The industrial metals extended the mixed trading session on Wednesday. On the LME, only Aluminium and Lead ended on a negative note, whereas on the MCX, most of the metals ended with a cut, except for Nickel, which ended on a positive note.

On Wednesday, investors considered the possibility that swift interest rate increases may slow down global economic growth and metals demand, keeping copper prices close to 16-month lows.

As central bankers strengthened their talk about taking measures to control decades-high inflation, industrial metals fell along with stock markets.

For the first time in four months, China's factory activity showed signs of expansion in June. This was primarily due to a faster recovery in production and easing of supply chain hiccups because manufacturing activity was somewhat impacted by the Covid quarantine measures in June as more factories worked in closed loops to prevent production disruptions.

Outlook: We expect copper to trade lower towards 697 levels, a break of which could prompt the price to move lower to 687  levels.