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Below are Quote On Gold and Base metal prices plunged following a stronger US Dollar by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Robust economic data reported by US gave strengthen to the US currency which dented appeal for the Dollar denominated Metals.

Gold

In yesterday’s trading session, Spot gold prices slipped about 2 percent to close at $1870.6 per ounce as strong US economic data gave strengthen to the US Currency in turn hampering appeal for the Dollar denominated Gold.

The ADP National Employment Report showing a significant increase in the US private sector hiring, lower than expected unemployment claims and expansion in the service industry signaled towards a steady recovery in US economy.

Spot Gold prices dipped below the $1900 mark as Investors drifted away from the safe haven asset after better-than-expected US economic figures boosted markets risk appetite.

Investors will have a keen watch on the key US economic data scheduled on Friday as the recent recovery raised chances of a possible tightening in monetary policy by the US.

Crude Oil

WTI Crude prices ended marginally lower by 0.06 percent on Thursday closing at $68.8 per barrel as increasing covid-19 infected cases in India and Brazil outpaced optimism over improved demand prospects and plummeting US Crude inventories keeping Oil prices in check.

As per reports from the Energy Information Administration, US Crude inventories plunged by 5.1 million barrels last week surpassing the markets expectation of 2.4 million barrels fall.

Oil prices rose earlier in the week as the Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to ease the production cuts as planned earlier as they projected global demand to outgrow the global supply in the coming months.

Base Metals

On Wednesday, Base metals on the LME traded lower as a stronger US Dollar and stalling demand from major metal consumer China continued to hamper the prices.

Also, Investors shunned growth linked assets like Base metals as upbeat US economic data reignited worries of monetary policy tightening by US. Even the US Currency strengthened making the Dollar priced commodities less attractive for other currency holders.

That, coupled with drop in premium for the imported metal into China indicated towards weak demand in the largest metal consuming economy which further dragged the industrial metals lower.

Copper

LME Copper plunged over 3.5 percent to close at $9788.5 per tonne despite the fall in Chile’s Copper production and potential mine disurptions as weak demand prospects from China and a stronger Dollar undermined the prices.

The Chilean Copper commission Cochilco reported that Codelco copper mine's output in April’21 stood at 132,700 tonnes i.e. a drop in production by 0.5% (yoy) whereas BHP’S Escondida mine production stood at 85,700, a 16.5 percent fall in the similar time frame.

Along with the ongoing strike at Chile’s Escondida & Spence Mine, land slide at Rio Tinto's U.S. Bingham Canyon copper mine further threatened the global supply chain.

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