Rising COVID-19 cases in Europe might dent the appeal for gold, crude oil, and base metals amid increased worries in the market over fresh restrictions. However, Gold ended higher as the US Treasury eased. Crude Oil made gains on account of ten tankers carrying oil being blocked due to the mishap at the Suez Canal. Base metals ended marginally lower amid worries over the reinforcement of fresh norms, triggered by rising COVID-19 cases.
Gold
Spot Gold ended higher by 0.4% and closed at $1734.2 per ounce amid the surge in COVID-19 cases in Europe and India. Easing US Treasury yield further boosted the appeal for the yellow metal.A sudden spike in the infected cases in India and Europe raised the chances of newly applicable restrictions. In turn, it dented the market\u2019s risk appetite while further supporting the haven, Gold.
Appreciating US Currency continued to weigh down the Dollar, further limiting the gains in the Gold prices. US Federal Reserve Chair Jerome Powell vowed to keep inflation within check as US Treasury yield eased and greenback continued to strengthen.However, the strengthening of the US Dollar along with rising COVID-19 cases across the globe might continue to further weigh down the yellow metal. Gold prices are expected to trade lower on MCX in today\u2019s trading session.
Crude Oil
WTI Crude gained around 6% and closed at $61.2 per barrel. Some of the losses in oil were reversed this week as tankers carrying 13 million barrels were blocked.
However, the gains were limited on account of increasing worries over new restrictions in Europe, the building up of US inventories, and a slow rollout of vaccines which dented the demand for Crude.
Worries over lockdown in Europe following rising coronavirus cases raised worries oversupply worries in the global oil market further capping the gains for Crude Oil.
Major European Nations have decided to halt the vaccination drive due to the side effects of the Oxford\/AstraZeneca vaccine. Suspension of the vaccine drives further dented the hopes of recovery in oil demand.
Bleak demand for crude along with a strong US Dollar and rising COVID-19 cases in Europe is likely to further weigh down Oil prices. Crude Oil prices are expected to trade sideways on MCX in today\u2019s trading session.
Base Metals
Base metals on LME ended mixed while Aluminium gained the most among the pack. Worries over fresh new curbs triggered by the rising COVID-19 cases in Europe along with the rising US Dollar continued to weigh down industrial metal prices.US Federal vowed to keep inflation under control, which led to a rise in Dollar prices amid a spike in coronavirus cases in Europe. This boosted the industrial metal\u2019s appeal.
Furthermore, strict environment norms in China raised worries over a possible fall in the demand, further weighing down the base metals\u2019 appeal. Chinese cities are pressured to limit energy usage to meet their energy consumption targets for Q1 of 2021.
Nickel inventories on the LME monitored warehouse stood at around 261660 tonnes, which is the highest in over 30 months.
Copper
LME copper ended marginally lower by 0.03% and closed at $8977.5 per tonne as the rising Dollar made the red metal less desirable for other currency holders.An appreciating US currency along with rising demands from China might weigh down Dollar priced base metals. Copper prices are expected to trade sideways on MCX in today\u2019s session.
Mr. Prathamesh Mallya
AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd<\/p>\n","protected":false},"excerpt":{"rendered":"