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Below are Quote On Gold continued to trend higher whereasOil& Base metalsgained on a promising outlook by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Potential inflation worries coupled with a lower Dollar buoyed Gold prices whereas Oil recovered on improving demand prospects.

Gold

Spot gold prices continued with the momentum from last week on Monday, posting gains of 0.2 percent to close at $1906 per ounce on the back of a lower Dollar and potential inflation worries.

Gold, widely considered as an inflation hedge, traded higher as the US consumer price index rose in April’21 as the domestic demand expanded following the reopening of US economy.

The US Currency remained lower while heading towards its second consecutive weekly loss against the peers making the bullion metal more attractive for other currency holders.

Moreover, the US treasury yield scaled lower which further strengthened prices of the non-yielding Gold.

However, massive vaccine programs around the globe and resumption of major economies continued to pressure the safe haven asset, Gold.

Crude Oil

Most US markets were closed in observance of Memorial Day whilst the UK markets were closed on account of Spring Bank holiday on 31^STMay’21. MCX Crude Oil prices rose about 0.3 percent to close at Rs.4870 per barrel as improved demand prospects following the resumption in major economies.

While a promising outlook overshadowed the worries over possible revival of Iran Oil in the global markets, markets continued to monitor the developments over the nuclear deal between US & Iran.

With expectation of re-entry of Iranian Oil, global Investors will now eye the OPEC meeting scheduled on 1st June’21 for cues on their production stance in the coming months.

Base Metals

The London Metal Exchange (LME) was closed on Monday on account of Spring Bank holiday in UK. Base metals on the MCX traded higher as hopes over boost in the infrastructure spending by US ignited worries of a possible shortage of metals in the global markets.

Also, the US Currency scaled lower making Dollar denominated industrial metals cheaper for other currency holders.

Industrial metals posted solid gains last week as bleak prospects of further monetary policy tightening by the PBOC and bets on improving global demand in the coming months underpinned the prices.

Moreover, the recent developments in the Sino-American relations overshadowed the recent shortcomings in China industrial sector and their attempts to curb commodity prices.

Copper

MCX Copper rose over 0.7 percent to close at Rs.766.8 per kg as supply threats for Copper intensified as the 200-member union of remote operations workers at BHP’s Escondida & Spence went on strike last week. However, the company ensure continued production by using replacement workers.

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