Spot Gold ended lower by 0.50 percent to close at $1782.7 per ounce By Mr. Prathamesh Mallya , Angel One Ltd
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Below are Views On Commodity Article 2nd December 2021 By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd
Easing fears of the new virus supported Oil & Base metals.
Gold
On Wednesday, Spot Gold ended lower by 0.50 percent to close at $1782.7 per ounce. Gold ended its losing streak as the Dollar eased following a strong uptrend.
Federal Reserve chair comments hinting towards speeding up the tapering of the expansionary policy in its upcoming meet gave strength to the US Dollar earlier in the week.
Also mounting worries over the impact of the new variant of the covid19 virus on the global economy further boosted appeal for the safe haven, Gold.
However, tapering of the expansionary policy by the US Central bank and hike in interest rates continued to be a major setback for the bullion metal prices.
Hawkish comments by US FED Chair might overshadow concerns over the impact of the omicron virus on the global economy and keep the safe haven, Gold under pressure.
Crude Oil
On Wednesday, WTI Crude ended lower by 0.92 percent to close at $65.6 per barrel. Oil prices reversed some of its losses in the earlier half of yesterday’s session after US officials said that they would continue to manage energy prices.
Crude prices plummeted in the past few sessions as uncertainties over the effectiveness of the vaccine against the new variant of Covid19 virus undermined market sentiments. Worries over fresh travel curbs and potential surplus in the coming year pressured sentiments.
However, most of the gains for Crude were erased following a lower than expected withdrawal from the US Crude inventories. As per reports from the Energy Information Administration, US Crude stocks fell 910,000 barrels last week, lower than the market forecasts for a 1.2 million-barrel drop.
Markets are expected to have a keen watch on the ongoing meet between the Organization of the Petroleum Exporting Countries which is expected to throw some light on the groups production stance in the coming months.
Expectations that the OPEC would hold back its plans to add crude supply in January’22 in wake of the new variant of Covid19 virus might levy some for-Oil prices.
Base Metals
Industrial metals on the MCX found some support in yesterday’s session as retreating US Dollar and easing worries over the impact of the new variant of coronavirus increased demand for riskier assets.
Markets shrugged off worries over the impact of the new Omicron coronavirus variant after the European Union drug regulator stated that the existing COVID-19 vaccines would provide protection against the new variant.
Base metal prices found some support as depleting LME Base metal inventories signalled towards a tight supply market.
However, increasing liquidity threats following bets towards a tighter monetary policy might keep the Base metals gains in check.
Depleting Base metals inventories across exchanges is expected to levy some support in todays session. However, the Dollar denominated industrial metals feel some pressure as Hawkish comments by US Central Bank underpinned the Dollar.
Above views are of the author and not of the website kindly read disclaimer
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