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Published on 13/10/2021 1:45:02 PM | Source: Angel One Ltd

Spot gold ended marginally lower by 0.35 percent to close at $1759.9 per ounce By Prathamesh Mallya, Angel One Ltd

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Below are Views On Spot gold ended marginally lower by 0.35 percent to close at $1759.9 per ounce By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd 

Inflation worries halt the rally in Oil prices.

Gold

On Tuesday, Spot gold ended marginally lower by 0.35 percent to close at $1759.9 per ounce. The bullion metal remained steady ahead of the Federal Reserve's recent policy meeting minutes due later today.

Some of the US Central bank Policymakers stated that the recent recovery in the US economy was enough to commence the withdrawal of the economic support which pressured on Gold prices.

Expectation of tapering of the asset purchase program and hike in interest rates underpinned the Dollar and government bond yields in turn denting appeal for the Dollar priced Gold.

However, mounting inflation worries following the resumption in global economies amid disrupted supply chain limited the fall in Gold prices.

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 Tuesday, WTI Crude ended marginally higher by 0.15 percent to close at $80.6 per barrel whereas MCX Crude eased by 0.2 percent closing at Rs.6094 per barrel. Oil prices steadied after a solid rally since last week following revival in global demand amid tight supply.

Increasing inflation worries reflecting the surge in Oil, natural gas and coal 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.

The gains for Crude were capped as appreciation in the US Dollar made the Dollar denominated Oil less desirable for other currency holders.

Rising fuel demand given the recovery in economic activities amid tighter Oil supply and increasing natural gas prices might keep prices elevated. However, power outage in major economies is expected to weigh on market sentiments.

 

Base Metals

On Tuesday, most Industrial metals ended lower on the LME & MCX as a stronger Dollar and mounting worries of potential inflation undermined market sentiments.

Also, uncertainties arising from China’s economy reflecting the slow industrial growth and ongoing property crisis further clouded the outlook for industrial metals.

Aluminium prices remain elevated as the supply threats for Aluminium continued to intensify as along with the stern environmental norms, revival in global demand triggered a shortage of energy in China which further hampered the operational activities at key smelting capacities.

 

Copper

On Tuesday, LME Copper ended lower by 0.8 percent to close at $9465 per tonne as increasing energy prices ignited worries of derailing the paced economic recovery which pressured base metal prices.

Spike in Coal and gas prices following potential shortage worries amid China’s ongoing property market crisis might weigh on base metal prices.

 

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