Mr. By Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd
On Monday, Spot Gold ended marginally higher by 0.1 percent to close at $1787.3 per ounce. The bullion remained under pressured extending the fall from past week as the Dollar remained elevated ahead of the key US economic data.
US Federal Reserve officials stated that the year-end plans to trim the asset purchase program are still online despite the slow growth in the US labor market which gave strength to the US Currency.
However, renewed restrictions across nations following the wide spread of the pandemic and increasing bets on potential inflations limited the fall in the safe haven asset Gold.
Markets will have a keen watch on the upcoming Federal Open Market Committee meet scheduled on September 21-22 for cues on US Central Banks stance in the coming months.
A stronger Dollar ahead of the key US economic data scheduled later in the week might keep the bullion under pressure.
On Monday, WTI Crude ended higher by 0.8 percent to close at $70.3 per barrel as disrupted supply from US amid prospects of increasing fuel demand underpinned prices.
Slower than expected resumption of the operational facilities at the U.S. Gulf of Mexico oil platforms helped Oil extend the gains from last week. As on Monday, over 40 percent of the US Gulf’s Oil and gas production remained offline after 2 weeks of the hurricane Ida hit the US Gulf Coast.
However, China releasing its Crude reserves and a stronger Dollar Limited the uptrend in Oil prices. China’s plans to sell its state crude oil reserves to few domestic refiners in an attempt to ease prices for manufacturers.
Low output from US amid expectation of increasing demand might help Oil extend the gains from the past week.
On Monday, most Industrial metals on the LME ended lower except for Aluminium as a stronger Dollar and widening impact of the pandemic weighed on market sentiments.
Aluminium prices rose to $3000 level on the LME earlier in the session for the first time after 2008 on fears of potential supply shortage. Increasing restriction on the production capacities in China (largest Aluminium producer) amid expectation of higher needs for Industrial metals continued to underpin Aluminium prices.
Aluminium prices have surged in the past few weeks as along with the disrupted supply from China, a rapid increase in Alumina prices and depleting inventories across exchanges.
On Monday, LME Copper ended lower by 0.6 percent to close at $9633.5 per tonne as a stronger US Dollar and easing supply worries amid bleak demand prospects from China continued to pressure the red metal prices.
Mounting worries of shortage in the global markets amid prospects of surge in demand might continue to support industrial metals. However, widening impact of the pandemic and slow growth in China’s economy remains a major setback for the entire pack.
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