Below are Quote On Gold remains steady whilst Oil gains on falling US Crude inventories By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd
While increasing infected cases of the new virus variant kept the investors cautious, depleting US Crude inventories continued to support Oil.
On Wednesday, Spot Gold gained about 0.5 percent to close at $1769.8 per ounce. The bullion metals headed towards a monthly decline following expectation of a hawkish approach by the US Federal Reserve.
The yellow metal continued to trend lower ahead of the US Job data scheduled on later this week as the Dollar strengthened making the Greenback priced Good less desirable for other currency holders. Rallying Dollar and rising global equities has taken all the steam out of the bullion metals.
Any developments in the US economy are expected to increase bets on a tighter monetary policy by their central bank which has dented appeal for the bullion metal.
Also reports suggesting that the US central bank might soon begin to clampdown the massive asset purchase program as soon as this year further added to the woes for Gold.
On Wednesday, WTI Crude rose over 0.7 percent to close at $73.5 per barrel as depleting US Crude inventories signaled towards a steady recovery in Oil demand. However, worries over increase in the highly contagious Delta variant infected cases in major Oil consuming nations kept the markets cautious.
As per reports from the Energy Information Administration, US Crude inventories dipped by 6.7 million barrel last week surpassing the market expectation of a 4.2 million barrel drop and reporting the sixth consecutive weekly fall.
Oil prices have reported significant growth in the past months as prospects of increasing global fuel demand in the coming quarters with economies reopening underpinned the prices.
Global investors are expected to remain cautious ahead of the Organization of the Petroleum Exporting Countries and allies meet scheduled on 1st July’21 i.e. Today. The group is returning 2.1 million barrels per day in the global markets from May’21 to July’21. Markets expect that the group might continue to ease production curbs imposed in 2020 following bets on boost in fuel demand in the months ahead.
In Yesterday’s trading session, Base metals on the LME ended mixed as prospects of sooner than expected rate hike by the US Federal Reserve and evident weakness in China’s factory sector weighed on the prices.
Concerns over tapering of the expansionary policy by US & China amid a firmer Dollar clouded the outlook for Dollar denominated industrial metals. However, expectations of boom in demand following the movement towards a green ecology in the times ahead carved a favourable outlook for industrial metals.
Soaring raw material prices dented manufacturing sector margins in May’21 and hampered growth in China’s industrial sector. In June’21, China’s official manufacturing Purchasing Manager's Index (PMI) dipped to 50.9 from 51 reported in May’21, data as per the National Bureau of Statistics.
Aluminium prices found some support earlier in the week following the persistent fall in Inventories in the warehouse monitored by the LME. The fall in the inventories come soon after China imposed stringent energy consumption norms in major Aluminium producing regions.
That coupled with Russia planning to impost export duties on Aluminium, Nickel, Copper and steel products further raised worries of a potential shortage in the global markets.
On Wednesday, LME Copper ended higher by 0.43 percent to close at $9374 per tonne but headed towards a monthly decline following slow growth in China’s industrial activities and high levels of LME inventories.
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