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Below are Quote On Gold eases while Oil soars on a promising outlook By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

A stronger Dollar undermined Gold whereas Oil gained on bets of surge in global demand as many economies reopened.

Gold

Spot gold ended lower by 1.2 percent in the week gone by as a firmer Dollar amid investors shifting towards riskier assets pressured the safe haven Gold. Robust economic data reported by US in the recent weeks kept the greenback elevated making the Dollar priced Gold less attractive for other currency holders.

Soaring US Consumer prices coupled with a fall in the number of Americans filing for the new unemployment signaled towards a firmer labor market in the world’s largest economy.

Losses for the bullion metal were limited as an accommodative stance by the US Federal Reserve and the European central bank coupled with potential inflation worries underpinned Gold prices.

Markets will have a keen watch on the US FED’s upcoming policy meet. While growing inflation might continue to levy support; investors might shift towards riskier assets following the revival in global economies.

Crude Oil

Last week, WTI Crude soared over 2.4 percent as hopes over revival in global Oil demand in the coming months and unlikely return of Iranian Oil in the global markets supported the prices.

Gains for Oil were capped as reports from the Energy Information Administration stated that the US fuel inventory surged by 7 million barrels last week while the distillate stocks rose by 4.4 million barrels. Spike in US gasoline inventory masked the significant fall in US Crude stocks and kept the prices in check.

Moreover, China’s Crude imports dipped by 14.6 percent in May’21 (yoy) as maintenance at Chinese refineries amid the stern environmental norms limited their Oil consumption. 

Oil prices also gave up some of its gains after a false report stating that the U.S. Treasury Department revoked sanctions on one National Iranian Oil Company alarmed global investors.

Upturn in major economies following the rising vaccination rates might continue to boost demand for Oil in the days ahead.

Base Metals

Most Industrial metals ended higher in the week gone by as reopening of major economies amid an accommodative approach by global central banks propped up the prices.

However, the gains were curbed as worries over falling demand from major metal consuming economy China continued to intensify. Following the evident weakness in the industrial segment, China’s dismal trade data and falling premium on imported metal hampered sentiments.

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.

Copper

LME Copper gained over 1 percent as mounting supply worries from Chile & Peru, top Copper producing nations, outpaced worries over bleak demand from China and supported the red metal prices.

Chinese officials vowing to strengthen the scrutiny of the commodities markets after the recent spike in factory gate prices might continue to weigh on the base metal’s spectrum in the days ahead.

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