The staggering economy has led to pronounced difficulties and has been accompanied by high rates of unemployment. Worries over a second and more substantial wave of coronavirus persist, as countries try to remove lockdown measures and return to normalcy.
Gold
On Wednesday, Spot Gold prices ended higher by 0.77 percent to close at $1715.3 per ounce after the U.S Federal Reserve announced new stimulus plans in anticipation of a more extended recovery period than predicted.
A large number of unemployed workers in the U.S is a pressing concern, and the FED has announced the creation of a string of tools to combat the dire situation.
For the next few months, interest rates are expected to keep low and may further support the yellow metal prices. The anticipated second wave of the pandemic, in addition to the comprehensive economic packages unfurled by many countries, boosted the price of Gold.
Silver
On Wednesday, Spot Silver prices ended higher by 1.49 percent to end at $15.6 per ounce, while prices on the MCX decreased by 0.21 percent to close at Rs. 42965 per kg.
Crude Oil
On Wednesday, WTI Crude prices ended lower by 1.90 percent to close at $25.3 per barrel. This development occurred despite the U.S Crude Inventory Levels falling by 475,000 barrels against the expectation of a rise of 4.1 million barrels.
Crude oil prices were supported earlier this month due to some calculated production cuts announced by major producers to deal with the problem of falling demand and oversupply. Saudi Arabia and the Organization of Petroleum Exporting Companies implemented measures to lower their production for the coming months.
However, the worries that the coronavirus might return in the winter months and the restrictions on the highly profitable aviation industry limited the gains for Crude Oil.
Base Metals
On Wednesday, most base metal prices ended lower as resurgent waves of the pandemic spread to China and South Korea. It pointed to the fact that quick removal of virus-related lockdowns would massively hurt the world population.
The ray of hope came from economic infusions and support plans being announced by the People’s Bank of China (PBOC) and the U.S Federal Reserve, which lent some support to the base metal prices.
Copper
On Wednesday, London Metal Exchange (LME) Copper prices ended slightly lower by 0.62 percent amid persisting worries of oversupply. The reopening of mines in Peru and other places of the world, coupled with a fast mutating and threatening virus, weighed on market sentiments and brought down the red metal prices.
The development of a vaccine and subsequent inoculation of a global population may be far off in the future. Meanwhile, world governments have to support measures to take their people out of abject poverty and misery and help restart the economy so that the world does not head into a recession.