Weekly Commodity Podcast With Ravindra Rao | 29th May 2023

Highlights of this week's Commodity Podcast:• Pending US debt ceiling deal, serious concerns about pace of Chinese economic rebound coupled with uncertainty regarding Fed rate outlook, all limited global risk appetite this week• Dollar closed the week near two months high at 104.2 as Core PCE price index, Fed’s preferred inflation gauge, rose 0.4% in April compared to the previous month, higher than expected 0.3%, it climbed 4.4% yoy• COMEX Gold slipped to two months low of $1936/oz and closed 1.7% lower, its third weekly loss as higher treasury yields outweighed haven bids owing to the US debt crisis. Stronger dollar, despite a serious threat of a catastrophic default as soon as June 1, added to the weakness. Silver too extended losses this week and closed nearly 3% lower in line with sharp decline in both gold and industrial metals• Base metals slipped to fresh multi month lows on few signs of a decisive recovery in China, US debt ceiling impasse and hawkish comments from Fed officials. LME Copper slipped to six-month lows while Zinc plunged to lowest in nearly three years hit by sharp increase in stocks at the LME warehouses in Singapore• On crude oil front warning by Saudi energy minister to short sellers and a bullish inventory report boosted oil prices to three-week highs and helped close the week with 1.8% gains, though further upside was capped as Russian Deputy Prime Minister Alexander Novak dismissed bets of further OPEC+ production cuts at its meeting next week• On the price action front US Dollar index has formed a Doji at the trend line resistance whereas gold is trading near a good support of $1934. Silver has formed a bullish engulf which might get confirmed this week Crude oil is stuck in a range trading between $75 to $71. A morning star candlestick formation in Zinc might push the prices higher only if the pattern confirms on a close above the pattern high of 213.25• Focus for the week will be on the US debt ceiling deal and US Labor report. NFP is expected to show some weakness that may lead to repricing of interest rate expectations and weigh on dollar