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Below are Quote On Gold and Base metals regain some of the lost ground in yesterday`s session By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Gold and Base metals regain some of the lost ground in yesterday’s session whereas Oil continued to gains on a promising demand outlook.

Gold

On Monday, Spot gold gained over 1.1 percent to close at $1782.9 per ounce. The bullion metals regained some of its lost ground after the significant losses in the past week as the Dollar and the US Treasury yield scaled lower.

Spot Gold prices dipped about 6 percent while Gold prices on the MCX plunged over 3 percent last week after the US Federal Reserve hinted towards a shift in the monetary approach following the steady recovery in the world’s largest economy.

Global investors shunned the yellow metal on prospects of a sooner than expected rate hike and tapering of the asset buying program by the US Central bank.

However, the US FED also increased their inflation projections for 2021 to 3.5%, exceeding the central bank’s target of 2%. Bets on increasing inflation in the coming months is expected to be supportive for Gold which is widely considered as an inflation hedge.

Crude Oil

WTI Crude prices ended higher by 2.8 percent on the first trading day of the week to close at $74.2 per barrel extending gains from last week on continued bets of increasing global Oil demand in the months ahead.

Speedy vaccination rates around the globe and bleak prospects of return of Iranian Crude in the global markets has kept Oil prices elevated in the past weeks.

With more economies reopening post the pandemic led curbs, the demand for Oil is set to increase in the months ahead which has painted a favorable outlook for Crude Oil.

The gains for Crude were capped as prospects of tapering of the expansionary monetary policy by the US Federal Reserve kept the prices in check.

Base Metals

In Yesterday’s trading session, Base metals erased some of its losses from the past week as a softer US Currency made the Dollar denominated metals more attractive for other currency holders.

Industrial metal prices plummeted last week as China vowing to sell metals from its national reserves to nonferrous processing and manufacturing firms through a public auction hampered market sentiments.  Moreover, the Federal Reserve signalling towards a hawkish approach in its recent policy meeting clouded the outlook for growth assets like the industrial metals.

As per reports from the International Aluminium Institute (IAI), Global primary aluminium production in May’21 climbed up to 5.744 million tonnes up from 5.543 million tonnes of output reported in April’21.

Copper

LME Copper gained about 0.4 percent to close at $9180 per tonne slightly recovering from the losses from the past week.

As per reports from the General Administration of Customs, China’s exports of unwrought copper and copper products in May’21 stood at 79,044 tonnes, up over 3 percent from April’21 a and about 68 percent higher from a year earlier.

China’s Copper exports in the first five months of 2021 stood at 369,403 tonnes, up over 10 percent from a year earlier as increase in overseas demand while global economies continued to recover from the covid19 pandemic. But increasing exports is also a sign of easing domestic demand which might keep investors cautious.

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