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Below are Views On Spot gold ended lower by 0.15 percent to close at $1764.6 per ounce By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd 

Worries over slowdown in the global recovery halts the rally in Oil and Base metal prices. 

Gold

On Monday, Spot gold ended lower by 0.15 percent to close at $1764.6 per ounce. Gold remained afloat as increasing inflation concerns and worries over slowdown in the global economic recovery.

Gold was pressured earlier in the month as the minutes of the Federal Reserve policy meet hinted towards commencement of withdrawal of the economic support by next month.

However, weaker than expected industrial activities figures posted by US following the disrupted global supply chain hinted towards weaker than expected recovery in the world’s largest economy.

Also, a weaker US Dollar and retreating US Treasury yield also levied some support for the non-interest bearing Gold.

Gold might remain under pressure as the Dollar continued to firm on expectation of a tighter monetary policy by the US Central bank.

Crude Oil

On Monday, WTI Crude scaled higher by 0.2 percent to close at $82.4 per barrel as potential shortage concerns amid increasing global demand helped Oil extend gains from the last week.

However, 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.

Also, increasing inflation woes reflecting the soaring energy prices raised worries of slowdown in global growth and hampered sentiments.

The IMF slashed its growth forecast for major economies following worries over disrupted supply and spike in energy cost might be a setback for the global economic recovery.

Signs of weakness in major Oil consuming nations might over shadow the optimism over increasing fuel demand and weigh on Oil prices.
 

Base Metals

Industrial metals on the LME & MCX ended mixed as prices eased after a stellar rally last week following worries over the recovery in global recovery.

The recent rally in Base metal prices across exchange was fueled by the energy crisis witnessed in major economies. Zinc posted the highest gains in the Base metal’s spectrum (over 19 percent on the LME & over 17 percent on the MCX) last week as increasing power consumption norms in major producer China and soaring electricity cost around the globe forced many smelters to cut production activities.

Base metals climbed higher despite of the slow growth in China’s economy as disrupted supply came inline with the resumption in global economic activities which supported sentiments.

While the power crisis has triggered potential shortage threats, investors are expected to remain cautious as it might also impact industrial metals demand.

Copper

LME Copper ended lower by 0.83 percent to close at $10196 per tonne. The red metal reversed some of its gains from last week following the increasing uncertainties arising from top metal consumer China.

Slow growth in China’s economy and dismal US industrial number might weigh on Base metals prices. However, a weaker Dollar is expected to levy some support for the Dollar denominated industrial metals.

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