Gold
On Wednesday, Spot
gold ended higher by 0.73 percent to close at $1784.1 per ounce. The bullion
metal extended gains from the earlier session as a softer Dollar supported the
Dollar denominated Gold.
Also, increasing bets over the inflation not being a
transitory element has been supportive for Gold as it is widely considered as a
hedge against inflation and currency debasement.
Some of the US Federal Reserve officials stated that
the US Central bank might soon begin with the withdrawal of economic support but
it was too soon to hike interest rates which further supported Gold prices.
Expectation that the US Federal Reserve would begin
with the tapering of the expansionary policy as soon as next month following
the recent increase in US consumer prices kept prices in check.
Lower US Dollar and increasing inflation
worries is expected to support the Dollar priced Gold.
Crude Oil
On Wednesday, WTI Crude gained over 1 percent to
close at $83.9 per barrel as depleting US Crude inventories amid increasing
shortage concerns across the globe strengthened market sentiments.
As per reports from Energy Information
Administration (EIA), US Crude inventories dipped by 431,000 barrels in the
week ending on 15th October’21 against the market expectation of a 1.9 million barrel
rise.
However, China moving towards easing coal prices and
mounting inflation worries limited the gains for Crude Oil. Soaring coal and
natural gas prices coupled with falling temperature in China is expected to
keep the Oil market under supplied and prices elevated in the days ahead.
Also, weaker than expected US industrial activity
figures and slowdown in China’s economy is expected to weigh on Crude prices.
Uncertainties arising from major Oil consuming nations following the disrupted
supply and virus outbreaks might put a pause on Oil rally.
Drop US Crude inventories and a softer US Dollar
amid a tight supply market might continue to support Crude Oil prices.
Base Metals
On Wednesday, most Industrial metals on the LME
& MCX traded higher on expectation of tighter supply reflecting the ongoing
power crisis around the globe.
Increasing supply constraints and depleting
inventories across exchanges has raised potential shortage concerns amid
resumption in global economic activities which has led to the recent uptrend in
the base metal’s spectrum.
Also, a weaker US Dollar made the Dollar
denominated industrial metals more desirable for other currency holders.
Copper
On Wednesday, LME Copper ended higher by 0.35
percent to close at $10185.5 per tonne. Copper traded higher as potential
supply threats and a softer US Dollar kept prices elevated.
Worries over disrupted supply from major producing
nation Peru as community announced to start a protest at a prime mining road
used by the Las Bambas copper mine following the failed negotiations which was
supportive for Copper.