(By: Mr.Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd.)
Gold prices ended higher on account of the weakening of the U.S labour market. However, a steady U.S. Dollar might weigh down the prices. Crude Oil ended lower amid increased COVID-19 cases and bleak demand prospects. Base metals extended mixed results with pressure from a weaker Dollar.
Spot Gold gained around 0.4% and closed at $1921.9 per ounce as weakening of the U.S. labour market boosted appeal for the yellow metal.
The number of new unemployment figures in the U.S. surged as the pandemic continued to disrupt the world’s largest economy.
International Monetary Fund expressed worries over the outlook for many emerging markets as the virus continued to spread at an alarming rate, limiting the losses for Gold.
U.S. currency strengthened, making Dollar-denominated Gold less appealing for the other currency holders. The Dollar rallied after the U.S. Treasury Secretary Steve Munchin expressed low chances of a deal over the new coronavirus relief fund before November’20 elections.
Steady Dollar paired with uncertainty over additional coronavirus relief fund might weigh down the yellow metal.
WTI Crude Oil declined by 0.2% and closed at $41 per barrel amid new coronavirus cases and uncertainty over the new stimulus aid by the U.S. that continued to undermine the outlook.
The resurgence of COVID-19 cases and increased worries over the reinforcement of lockdown in the world’s significant economies dented demand prospects for Crude, thereby dipping oil prices.
U.S. Crude inventory levels decreased by 3.8 million barrels last week as reported by the U.S. Energy Information Administration.
China’s crude imports increased by 17.5% and stood at 11.8 million barrels per day as some of the cargoes finally cleared the custom. Increased Oil demand from China – world’s top oil consumer, extended support to crude prices.
However, worries over increasing coronavirus cases and an increase in supply by OPEC+ undermined Crude outlook.
Base metals traded with mixed results on LME as hopes for new coronavirus relief fund by the U.S. faded. A weaker Dollar further pressurized the industrial metal prices.
Many nations reinforced lockdown after an alarming increase in the COVID-19 cases in Eurozone. The widened impact of the pandemic continued to hamper the outlook for the industrial metals.
International Nickel Study Group projected an increase in global Nickel demand to 2.52 million tonnes in 2021 from 2.32 million tonnes in 2020. Moreover, increased demand from the stainless steel and the booming Electric Vehicle sector is expected to extend further support.
LME Copper ended higher by 0.49% and closed at $6749 per tonne amid stable demand from China and worries over disrupted supply from Chile. However, appreciating the Dollar capped the gains for the red metal.
Robust demand from China and labour negotiations at major Chilean mines are expected to support Copper.
You might also like
More from Business
Flipkart’s The Big Billion Days brings festive cheer like never before for MSMEs and Consumers across India
Over 666 million visits on Flipkart recorded during the Big Billion Days with over 52% of these visits recorded …
TRADEINDIA. COM LAUNCHES TRADEKHATA DIGITAL SOLUTION TO EMPOWER 5.5 Mn SMES AND MSMES ON ITS PLATFORM
Aims to enable end-to-end business digitization and payment solutions for 5.5 million sellers as part of the Digital India initiative Mumbai, …
By: Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd Uncertainty over the U.S. financial aid extended support …