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Below is quote On Gold ends the week with positive gains following dovish approach By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd 

A dovish approach by the US Federal Reserve underpins Commodities

Gold ends the week with positive gains following dovish approach by the US FED whereas supply worries support industrial metals.

Gold

Spot Gold ended the week with gains of 1 percent following dovish comments by the US Federal Reserve officials in the recent policy meet.

The US FED kept interest rates unchanged and didn’t give any fixed timeline on tapering of its expansionary approach after the two-day meet. Interest rates steady at record low levels undermined the US Treasury yield and the Dollar in turn boosting appeal for the non-interesting bearing Gold.

Also, increasing cases of the new variants of coronavirus raised threats of further slowdown in the global economic recovery which continued to hamper market sentiments in turn supporting the safe haven, Gold.

Low interest rates and no signs of tapering by the US FED amid the widespread of the Delta variant virus might continue to support Gold prices in the coming sessions.

Crude Oil

WTI Crude gained over 3.1 percent in the week gone despite the widespread of the delta variant of the covid19 virus as depleting US Crude inventories and an accommodative stance by the US FED underpinned market sentiments.

As per reports from the Energy Information Administration, US Crude inventories decreased by 4.1 million barrels in the week ending on 23rd July’21, surpassing the market expectation of a 2.6-million-barrel fall.

The Organization of Petroleum Exporting Countries and their allies, also known as OPEC+ announced to increase Crude supply by 400,000 barrels per day from August’21 to December’21 in order to meet the rising global crude demand in the months ahead which was also supportive for Oil prices.

Bets on a sustained growth in the global Oil demand and a lower US Dollar might continue to support Oil prices in the coming week.

Worries over a bleak demand outlook following the slow growth in China’s industrial sector amid increase Oil production by OPEC might weigh on Oil prices in today’s session.

Base Metals

Most Industrial metals on the LME ended the week with marginal gains except Aluminium which rose over 2.8 percent. The volatility witnessed in the industrial metal’s spectrum was following a series of events during the week.

A weaker Dollar and mounting supply concerns due to flooding in China supported the prices; however, slowdown in China industrial sector due to high raw material prices and their persistent attempts to ease commodity prices kept a lid on the Base Metal prices.

Aluminium prices soared later in the week as fresh round of power consumption norms imposed in a major Aluminium producing region of China further raised worries of shortage in the global markets.

LME Copper ended marginally lower by 0.8 percent due to bleak demand prospects arising from top metal consumer China. However, the fall in Copper prices was limited on worries over a disrupted supply chain. Markets kept a keen eye on the labour contract negotiations at Chile’s Escondida Mine, the world’s largest Copper reserve.

The worker’s union found the “final offer” by operator BHP presented earlier in the week to be insufficient and called in the labour group to vote for a strike. The Supply Chain for Copper was further threatened after workers union at Chile's Andina copper mine (operated by state-owned Codelco) rejected the company offers igniting worries over a potential strike.

An evident slowdown in China industrial sector clouded the demand prospects in the world’s largest metal consuming nation and pressured the industrial metals.

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