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Quote on Gold by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel One Ltd

GOLD

Gold prices continued to be dragged lower, as it settled with nearly 1 percent cut at 1940.3$ per ounce.

On Thursday, gold fell to its lowest level in two months as speculation of another Federal Reserve rate hike was spurred by strong economic data and optimism around the U.S. debt ceiling negotiations.

President of the United States Joe Biden and top Republican in Congress Kevin McCarthy seemed to be getting close to an agreement on the US Debt ceiling.

After official data revealed that new US jobless claims increased slightly last week, indicating ongoing labor market strength, and revised up the anticipated GDP growth last quarter, gold prices continued to decline.

Outlook: The US dollar has risen to 2-month highs, capping the upside for gold, as prices are expected to remain under pressure.

CRUDE

Crude which was doing better in the times where the other commodities were struggling, succumbed to the selling pressure, as prices cracked lower in the previous session.

Markets are now waiting for clarification on OPEC and its partners' next oil policy move, as well as the outcome of next week's meeting.

Oil prices cracked by 2-3% as Russian Deputy Prime Minister Alexander Novak downplayed the probability of additional OPEC+ output cutbacks at the upcoming meeting.

Outlook: Due to projections of rising demand throughout the upcoming peak demand season in the United States, crude prices are anticipated to keep rising.

BASE METALS

After witnessing a sharp fall in the previous session, metal prices showed some respite, as settled higher, exceot for Zinc, which remained lower.

Copper experienced a bounce, rising just over 1% after falling to month-low levels.

Concerns over a global economic slowdown and the strength of the dollar sparked sell-offs earlier this week, and copper is set to drop for a sixth straight week.

While zinc inventories in LME-registered warehouses increased by 40%, rising stocks may indicate that the commodity isn't needed and that excesses are being stored there.

Outlook: Because of the uncertainties surrounding the US debt, the higher dollar, and the sluggish Chinese demand, metal prices are likely to stay under pressure.

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