By: Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd.
The weakening of the U.S. Dollar supported the Spot Gold and Base Metal prices. Copper, however, ended in the red due to depleting inventories of the red metal. Crude Oil prices were dented by lower demands triggered on account of the ongoing pandemic. OPEC stated that the global Oil demand is expected to decline by 9.46 million bpd in the current year.
Spot Gold increased by 0.77% and closed at $1956.4 per ounce on Monday amid depreciating U.S. Dollar and expectations of a dovish stance by the U.S. Federal Reserve.
The U.S. Congress and White House negotiators might strike a deal for additional stimulus funds, further shifting the investors towards the yellow metal. Increasing worries over the Brexit deal also supported the yellow metal.
The European Union has demanded the U.K. to withdraw the Internal Market Bill by the end of this month on which the house of commons is due to vote.
The Gold prices were further supported by the rising number of COVID-19 cases worldwide and reduced hopes of global economic recovery among the investors. Gold prices are expected to trade higher on MCX in today’s session.
WTI Crude ended lower by 0.19% amid rising concerns over the demand of the crude oil triggered by the global pandemic. However, the concerns of the storm hitting the Gulf of Mexico were overshadowed by a resumption in Libya’s Oil production.
Libya resumed Oil production after months of lockdown. Libyan Oil production is likely to add over a million bpd to the global Crude market. However, worries over bleak demand for the Crude continue to persist.
OPEC, which is scheduled to meet its allies on 17th September’20, reported that the global Oil demand declined by 9.46 million bpd in 2020, which is much more than projected.
Reduced global demand for the Crude and increased Oil supplies might further dent the Crude prices. Oil prices are expected to trade lower on MCX in today’s session.
Base Metals on the LME ended higher as demand for the industrial metal from China increased. A weaker Dollar further elevated base Metal prices. However, the rising tensions between the U.S. and China and the growing number of coronavirus cases kept the prices in check.
Chinese Banks increased loan disbursement in the last month as an attempt to support the economic revival, which further increased the base metal prices. The new loans issued by the People’s Bank of China stood at 1.28 trillion yuan or $187.25 billion in August’20. This is 29% higher than the amount of loans sanctioned in July’20.
China’s refined zinc production increased by 2.8% while refined nickel output went up by 15%.
LME Copper ended lower by 0.7% due to significant depletion in the LME Copper inventories, supported by depreciated Dollar and higher demand from China. Copper prices are expected to trade higher on MCX in today’s session.
You might also like
More from General
2018 winner of Indian Government tender to supply Army with 93,895 CAR 816 assault rifles, moves commitment to fully …
New Delhi, 17 September 2020: EnableX.io, Asia’s leading full-stack Communication-Platform-as-a-Service (CPaaS) provider, today announced that Olivier de Puymorin has joined the company’s …