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Below is quote On Gold steady while Oil continues to regains lost ground By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd 

Revival in the risk appetite of global investors on bets ofresumptions in economic activities around the globe levied some support for Oil and Industrial metals.

Gold

Spot Gold ended lower by 0.5 percent in the week gone by as boost in markets risk appetite, revival in Oil prices and bets on the inflation being transitory element dented appeal for the yellow metal.

The losses for Gold were limited as returns on US Treasuries eased after the auction of $16 billion in 10-year TIPS was bid at record low.

Also, the European Central Bank keeping their stance accommodative and interest rates at record low levels in the recent meet in order to support their economy and boost inflation was also supportive for Gold.

Weaker than expected US economic data in the week gone by shifts all the focus on the U.S. Federal Reserve meeting scheduled in the coming weeks for hints on their monetary approach ahead.

Crude Oil

Last week, WTI Crude ended higher by 0.4 percent despite the massive fall in the beginning of the week and an uptick in US Crude inventories as bets on surge in global demand following the recovery in global economies kept Oil prices afloat.

Oil prices plunged over 7 percent in the beginning of the week as the Organization of Petroleum Exporting Countries and their allies, also known as OPEC+ agreed on increasing Crude supply by 400,000 barrels per day from August’21 to December’21.

However, Crude prices ended the week in the positive territory on hopes of a tighter global Crude market following the resumption in global economies.

Expectation of increase in global demand and an accommodative approach by major central banks might be supportive for Oil in the week ahead.However, floods in China and soaring COVID-19 variants cases might weigh down the demand.

Base Metals

Most industrial metals on the LME ended higher with Lead and Nickel posting the highest gains amongst the pack. Revival in markets risk appetite and expectation of increasing demand following the recovery in global economies underpinned the prices.

The base metals complex traded higher despites China’s announcement to release another batch on industrial metals in an attempt to ease the soaring Commodity prices. After the successful first round of China’s State Reserve metal auction held in the first week of July’20, China's National Food and Strategic Reserves Administration announced to sell 30,000 tonnes of copper, 90,000 tonnes of Aluminium and 50,000 tonnes of zinc of their reserves in the second sale scheduled on 29th July’21.

Lead prices soared during the week as a major Lead manufacturing capacity situated in Western Germany halted operations following severe flooding. Berzelius Stolberg (German lead producer) declared a force majeure last week on the metal shipments from the Stolberg smelter which has an annual capacity of 155,000 tonnes, according to its website.

Copper

LME Copper gained about 1 percent in the week gone by as plummeting inventories on the LME monitored warehouse and improved risk appetite supported the prices.

Industrial metals are expected to remain volatile in the week ahead with the sale of China’s state reserves and the US Federal Reserve meeting being the centre of focus.

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