Commodity Article : Gold, Crude slips over a percent on stronger dollar Says Prathamesh Mallya, Angel One


Bullion on Monday slipped below the $2000 mark, slipping nearly 1 percent
Gold fell as the dollar rose, as investors awaited this week's US inflation data, which might impact the Federal Reserve's
monetary policy path.
According to data, the top bullion consumer China's March inflation hit the slowest pace since September 202, indicating that
demand weakness continued despite an uneven economic recovery.
A stronger-than-expected reading could indicate that the Fed will raise rates again in May.

Outlook: We expect gold to trade lower towards 59660 levels, a break of which could prompt the price to move lower to 59370


Brent remained shut for trading on Monday. Whereas, NYMEX slipped lower continuining the weakness, down over 1 percent.
Oil prices dipped on Monday after climbing for three weeks in a row, as US jobs data indicated a tight labour market, raising
anticipation of another Federal Reserve rate hike, which could reduce oil demand.
Rate hike expectations raised the US dollar index on Monday, weighing on oil prices, as a stronger dollar makes oil more
expensive for holders of foreign currencies.
Concerns about more interest rate hikes could dampen demand. Investors were looking forward to a slew of statistics on
inflation, oil demand, and supply due this week, which might provide market direction.

Outlook: Crude prices are likely to be under pressure, as economic data is pointing towards an anticipated rate hike by the US
Fed would likely hurt the demand for crude oil.



The LME was closed for trading on Monday, however, it was a mixed day of trading for metals on the MCX, with Aluminium,
Lead and Zinc ending on the higher side.
In order to gain further insight into the trajectory of interest rates ahead of the Federal Reserve's policy meeting next month,
investors are now waiting for the US consumer pricing data due on Wednesday.
According to the data released, China's consumer inflation in March slowed to its lowest level since September 2021 as a result
of dropping food costs, signaling that demand weakness is still present despite an uneven economic recovery.
According to a senior official, production in Peru, the second-largest copper producer in the world, is anticipated to reach 2.8
million tonnes this year, up about 15% from 2022, a bright spot for the Andean nation's top export.

Outlook: We expect copper to trade higher towards 772 levels, a break of which could prompt the price to move higher to 776



Please refer disclaimer at 
SEBI Regn. No.: INZ000161534


Above views are of the author and not of the website kindly read disclaimer