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Below are Quote On Gold dips lower ahead the US Federal Reserve meet whereas Oil clings on to its gains from the past week By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Gold dips lower ahead the US Federal Reserve meet whereas Oil clings on to its gains from the past week.

Gold

Spot gold ended lower by 0.6 percent to close at $1866 per ounce in yesterday’s trading session. The bullion metal extended losses from last week as markets expected a shift in the US monetary policy following a steady recovery in the recent weeks.

Investors moved away from Gold ahead of the US Federal Reserve policy meet which is scheduled on 15th & 16th June’21. Expectation of possible tightening of the expansionary policy strengthened the Dollar.

The yellow metal remained elevated earlier in the month as an accommodative stance by global central bank kept the demand afloat. Bets on a potential rate hike by the US FED dented appeal for the bullion metal.

Speculators trimming their net long positions in COMEX gold, rising Oil prices and investors shifting towards the riskier assets dragged Gold prices lower.

Crude Oil

On the first trading day of the week, WTI Crude marginally lower by 0.04 percent to close at $70.9 per barrel. Oil clung on to its gains from the past week as projections of increase in global Oil consumption in the coming months supported the prices.

Expectation of a paced revival in major economies following the increase in vaccination rates pointed towards a promising outlook for the global Oil market.

Oil also found some support as unlikely return of Iranian Oil in the global markets in times of increasing global fuel demand underpinned the prices.

The International Energy Agency (IEA) appealed to the Organization of the Petroleum Exporting Countries (OPEC) and allies (also referred as the OPEC+), to increase the output in order to meet the soaring demand.

Base Metals

Industrial metals on the LME ended mixed on Monday with Aluminium and Nickel posting the highest gains amongst the pack. Premium on Aluminium shipments into Japan was set at $185 per tonne for July’21 to September’21, up about 25 percent than the premium of $148-149 a tonne set in April’21 to June’21.

Plummeting LME Inventories, limited output from China following the stern energy consumption norms and soaring Japanese Aluminium premium might be supportive for the light metal prices.

Bets on tapering of the expansionary monetary policy by the US central bank coupled with worries over China’s move to curb any commodity prices increase undermined the prices.

Markets will have a keen watch on China’s industrial production data of May scheduled later this week for cues on demand in the biggest metal consuming economy.

Copper

LME Copper ended lower by 0.32 percent to close at $9971.5 per tonne as China’s move to curb any price increase in commodities and easing worries over the strike at the Spence mine in Chile undermined the prices. Worker at the Spence mine situated in Chile reached a new contract with the company easing worries of strike which weighed on Copper prices.

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