A weaker U.S. Dollar extended support to both base metals and gold in the last trading session. Gold attracted investors on account of increased worries over additional stimulus aid. China’s steady industrial growth supported base metal prices. Crude on the other hand, gained on account of closure in some of U.S. oil production capacities. However, bleak demands in the global oil market might dent the prices.
Gold
Gold ended higher by 0.27% and closed at $1906.8 per ounce amid increased worries over the resurgence of COVID-19 cases. A weaker U.S. Dollar further extended support to the yellow metal.
An alarming increase in the coronavirus cases hampered the global economic outlook. Many nations have reinforced lockdown, which dented investors’ risk appetite and attracted them towards the safe haven, Gold.
No concrete signs of any additional stimulus aid by the U.S., limited the gains for the yellow metal. U.S. House Speaker Nancy Pelosi hoped for a possible deal with White House Officials before the upcoming Presidential election due in November’20.
However, uncertainty regarding additional coronavirus relief fund by the U.S. underpinned the Dollar,which might weigh down Gold. Gold prices are expected to trade lower on MCX in today’s session.
Crude Oil
WTI Crude surged by 2.6% and closed at $39.6 per barrel as some U.S. Oil Production capacities closed. Closure of U.S. oil production overshadowed worries over the pandemic, while Libya increased Oil production.
Hurricane Zeta forced the closure of some Crude Oil production capacities on the Gulf of Mexico, which further supported Oil prices.
However, there is an increase in oil output from Libya, at its largest oil field, Sharara. They resumed production amid bleak global demands for Oil, which weighed down Crude prices.
A spike in coronavirus cases across the globe led to fresh curbs in major economies, which dampened the outlook for the already disrupted Oil market.
An expectation of recovery in U.S. Oil inventory amid bleak demands might push down the Oil prices further. Oil prices are expected to trade lower on MCX in today’s session.
Base Metals
Base metals on LME ended in the green amid weaker Dollar and steady growth in China’s industrial activities, which extended support to metal prices.
However, worries over additional stimulus aid by the U.S., and an increasing number of COVID-19 cases across the globe capped the gains for industrial metals.
China’s industrial companies reported a profit for the fifth consecutive month, projecting a steady economic recovery in the world’s biggest metal consumer. The growth, however, was slower as raw material prices surged and factory-gate prices declined.
China’s imports of unwrought Aluminium & Aluminium products declined by 17.1% and stood at 355,999 tonnes.
Copper
LME Copper ended higher by 0.25% and closed at $6798 per tonne amid weaker U.S. Dollar and steady economic recovery in China.
Stalled talks over additional coronavirus relief aid and an increasing number of COVID-19 cases might dent the industrial metal prices. Copper prices are expected to trade sideways on MCX in today’s session.