An appreciating Dollar along with an alarming surge in the coronavirus cases across the globe dented the appeal for Gold, Crude Oil, and Base metals. Base metals found some support as China’s industrial activities grew; however, the rate of growth was reduced compared to that in August’20.
Gold
Gold ended lower by 0.53% and closed at $1,867.1 per ounce. The strengthening of the U.S. Dollar made Dollar-denominated Gold less appealing for other currency holders.
President Trump’s administration stated that an agreement on the coronavirus relief fund would only happen after the presidential elections due in November’20.
Despite a weaker labor market in the U.S., the economy revived at a good pace in the third quarter of 2020. This reflected the enormous amount of stimulus infused by the government, which further dented the appeal for the yellow metal.
However, the resurgence of the new coronavirus cases in the U.S., Europe, and other significant parts of the world amid uncertainty ahead of the U.S. elections capped the losses for safe haven, Gold.
Uncertainty over additional stimulus aid by the U.S. supported Dollar, which might further weigh down the Gold prices. Gold prices are expected to trade lower on MCX in today’s session.
Crude Oil
WTI Crude declined by around 3.2% and closed at $36.2 per barrel amid worries over the virus’s resurgence. A stronger dollar further weighed down oil prices.
An increase in the reported number of cases in the U.S., Europe, and other parts of the world raised worries over stricter restrictions. Oil prices dipped as the restrictions might slowdown economic growth recovery.
U.S. Energy Information Administration reported a rise of 4.3 million barrels in the U.S. Crude inventory, which further extended the losses for Oil. U.S. Oil inventories rose last week as crude production surged to its highest in almost three months.
Oil prices are expected to remain under pressure because of increasing COVID-19 cases and worries over fresh lockdown. Oil prices are expected to trade lower on MCX in today’s session.
Base Metals
Most of the base metals on the LME ended in the red as uncertainty over the additional stimulus aid by the U.S. prevailed. The rising number of coronavirus cases across the globe shifted the investors towards Dollar.
Increase COVID-19 cases in the U.S., Europe, Russia, and other significant parts of the world, and fears of fresh lockdown dented the demand for industrial metals.
Nickel prices found some support as Hinatuan mine owned by Nickel Asia Corp suspended operations.
China’s industrial companies reported profits for the fifth consecutive month, indicating an economic recovery in the world’s biggest metal consumer. However, the growth slowed down in August’20 due to a surge in raw metal prices and a sharp decline in factory-gate prices.
Copper
LME Copper ended lower by 0.27% and closed at $6,729.5 per tonne amid a stronger U.S. Dollar and fears of fresh coronavirus cases, which further weighed down the red metal prices.
Appreciating the dollar and increasing COVID-19 cases might continue to weigh down Copper prices further. Copper prices are expected to trade sideways on MCX in today’s session.