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Below are Quote On Gold eases whilst Oil recovers on depleting US Crude inventories by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Gold pricessteadied in yesterday’s trading session while decreasing US Crude inventories over shadowed the worries of a possible supply glut and support Oil prices.

Investors now wait for the key economic data like US GDP & jobless claims scheduled later today i.e. on Thursday for cues on the economic situation in the world’s largest economy.

Gold

In yesterday’s trading session, Spot gold ended marginally lower by 0.15 percent to close at $1896.4 per ounce as fading inflation worries undermined Gold, the inflation hedge; however, an accommodative stance by the US Federal Reserve limited the fall in the yellow metal.

Gold prices remained elevated in the earlier sessions as the US Treasury yield and the Dollar scaled lower on the back of weak US economic data and bets on a low interest environment for a prolonged period underpinned Gold prices. Recovery in the US Currency made the Dollar priced metals less desirable for other currency holders.

Also, major economies reopening and massive speedy recovery around the globe continued to strengthen investor sentiments in turn denting appeal for the safe haven, Gold.

Crude Oil

In yesterday’s trading session, WTI Crude ended marginally higher by 0.21 percent to close at $66.1 per barrel as optimism over recovery in Oil demand and depleting US Crude inventories kept prices elevated.

As per reports from the Energy Information Administration (EIA), US Crude inventories dipped by 1.7 million barrels last week which further supported Oil prices.

The progress in the nuclear deal between US & Iran was the point of focus for markets as it could lead to lifting of sanctions from Iranian energy industry. If the deal works out it would bring about 1 million to 2 million barrels per day (bpd) in additional oil supply to the global markets which weighed on investors sentiments and capped the gains for Crude.

Also, increasing Covid19 infected cases in major Oil consumer India and prospects of weak demand from China pressured Oil prices.

Base Metals

In yesterday’s trading session, Industrial metals on the LME ended positive as a lower US Currency and bets on recovery in global demand kept the prices elevated.

A lower US Currency following the dovish stance by the US FED made the Dollar priced industrial metals more appealing for other currency holders.

China has vowed to increase scrutiny over the commodity market and take steps to eliminate excessive speculations in prices of items like iron ore, copper and corn in its 14th five-year plan from 2021 to 2025. Top metal consumer China set out to limit the soaring commodity prices continued to be a headwind for the industrial metals.

Copper

LME Copper rose over 0.6 percent to close at $9979 per tonne as a softer greenback and mounting supply worries supported the red metal prices.

The negotiations between the workers at BHP’s Escondida& Spence Copper mine took a turn for worse after the Union representing workers rejected the latest offer made by the company and threatened of strike beginning from Thursday.

Spence produced 146700 tonnes of Copper in 2020 while the world’s largest Copper deposit, Escondida, production stood at 1.19 million tonnes in the similar time frame.

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