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Below are Quote On Gold up easing Bond yields while Oil plunged from a multiyear high By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Gold remain elevated while Oil prices plunged after the OPEC group called off a meeting without reaching an agreement on the supply scenario.

Gold

In yesterday’s trading session, Spot gold ended higher by 0.3 percent to close at $1796.7 per ounce. The bullion metal edged higher as the benchmark US Treasury Yield retreated lowering the opportunity cost of holding Gold; however, a stronger Dollar kept the prices in check.

Soaring number of Delta variant COVID-19 cases ignited worries over extension of lockdown in major economies further derailing the economic recovery. The wild spread of the virus clouded the bets on a paced economic revival in turn boosting appeal for the safe haven asset, Gold.

Investors are expected to have a keen eye on the US Federal Reserve latest policy meeting minutes scheduled on Wednesday for cues on the central bank’s monetary stance in the coming months.

Crude Oil

On Tuesday, WTI Crude prices fell over 2.4 percent to close at $76 per barrel while MCX Crude prices dipped over 3.3 percent to close at Rs.5497 per barrel as OPEC called off a meeting after failing to reach an agreement to raise supply in order to meet rising global demand.

Hopes over gradual unwinding of the production curbs imposed by OPEC and its allies in 2020 faded after Saudi Arabia, the de facto leader of the group, and UAE were unable to strike a deal on the supply scenario in the months ahead.

Oil prices surged to a multiyear high after markets expected a tighter supply markets in times of increasing fuel demand. However, Crude retreated later yesterday’s session after investors booked profits as prices hit record high levels.

Moreover, worries over tighter pandemic led curbs in Asia, Australia and Europe following the increase in the Delta variant cases further pressured on the prices.

Base Metals

Industrial metals traded lower on the LME as well as MCX with Copper and Nickel losing the most amongst the pack as worries over stalling demand from China and a firmer US Currency undermined the prices.

The first round of China’s state reserve auction (scheduled on 5th & 6th July’21) required just one of two days allotted to complete the sale of all the copper and aluminium specified quantity.

Soaring demand for lead acid batteries amid mounting freight problems and plummeting LME inventory levels raised worries of potential shortage in the global Zinc prices which kept the prices elevated.

Resurgence of Covid19 cases, high raw material prices and disrupted supply chain led to a slower than expected growth in China’s industrial sector in June’21. The Caixin Manufacturing Purchasing Managers' Index (PMI), which focuses on small and medium sized industries, dipped to 51.3 in June’21 from 52 reported in May’21. Even the exports orders were pulled lower as the wild spread of Delta variant of the virus took a hit on the global demand.

Copper

Yesterday, LME Copper ended higher by 1.43 percent to close at $9511.0 per tonne as slowdown in China’s manufacturing activities and a stronger Dollar undermined the red metal prices.

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