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Below are Quote On Gold steadied whilst Base metals & Crude Recovered on a promising outlook by Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Gold steadied whilst Base metals & Crude Recovered on a promising outlook

Gold prices eased while Crude Oil and Base metals regained lost ground on the first trading day of the week as improving demand prospects following the robust recovery in global economies shifted the investors towards riskier assets.

However, China’s attempting to contain the Commodity prices and persistent rise in covid19 infected cases in Asia might keep the global investors cautious.

Gold

Spot gold began the week with marginal gains of 0.04 percent to close at $1881.1 per ounce as retreating US Treasury yield, a softer Dollar and increasing Covid19 infected cases in Asia continued to boost appeal for the safe haven asset, Gold.

Also, supporting Gold prices were the potential inflation worries coupled with recent fall in the cryptocurrency, Bitcoin.

However, a speedy recovery in global economies, solid gains in global equities and paced distribution of the vaccine around the globe boosted markets risk appetite which kept a lid on the yellow metal prices.

Investors now wait for the key economic data scheduled later this week for cues on the current economic situation around the globe.

Crude Oil

On Monday, WTI Crude soared over 3.8 percent to close at $66.1 per barrel as optimism over recovery in Oil demand following the massive vaccination programs in many nations coupled with weakening bets on Iranian nuclear deal underpinned Oil prices.

Oil prices recovered most of its losses made in the earlier week as bets on solid recovery in global economies outpaced worries of any possible supply glut led by resumption in Iranian Oil supply.

Also, reports from the U.S. National Hurricane Center (NHC) signaled that a lower pressure system in the Gulf of Mexico might turn into a storm which further strengthened Oil prices.

However, increasing Covid19 infected cases in Asia and prospects of weak demand from China capped the gains for Crude.

Base Metals

On the first trading day of the week, Industrial metals on the LME ended mixed with Nickel posting the highest gains amongst the pack. A weaker US Dollar coupled with major economies easing restrictions painted a favourable demand outlook for industrial metals.

However, China’s move to cap the rising Commodity prices remained the point of concern for Global investors. Chinese regulators have vowed to keep a check on their commodity market, increase scrutiny for both futures and spot markets and restrict irregularities and malicious speculation.

Power curbs in the Yunnan province in south west China, a home to major Zinc smelters, forced smelters to trim production which dented demand for zinc concentrate in turn pushing Zinc TC’s higher. The Spot Treatment charges (TC’s) for Zinc in top consumer China which hovered near $70 per tonne climbed to $95 a tonne last week (assessed by Asian Metal), increasing over 35 percent following low concentrate demand by Chinese smelters.

Copper

On Monday, LME Copper gained about 0.4 percent to close at $9947 per tonne despite China’s attempt to curb the soaring commodity prices as a lower Dollar and robust recovery in global economies underpinned the red metal prices.

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