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Below are Views On Spot Gold prices might remain steady ahead of the Powell's speech at the Fed's annual economic symposium By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Appreciating US Currency weighed on the Dollar priced commodities.

Oil extended the fall from the earlier session following worries over widespread of the Delta variant amid a stronger US Dollar.

Gold

On Thursday, Spot Gold ended marginally lower by 0.08 percent to close at $1787 per ounce. The billion metals extended the fall from the earlier session as the US Currency and Treasury yield strengthened ahead of the outcome of the U.S. Federal Reserve's symposium.

St. Louis Federal Reserve president James Bullard stated on Thursday that the U.S. Federal Reserve is moving towards reducing the $120 billion in monthly bond purchases which gave strength to the Dollar.

Markets will have a keen eye on FED Chair Jerome Powell’s speech scheduled on 27^th August for cues on their stance in the coming months.

However, the recent outbreaks of the Delta variant raised some expectations of a delay by the US Central bank in withdrawing the stimulus measures in order to support their economy which limited the fall in Gold prices.

Spot Gold prices might remain steady ahead of the Powell's speech at the Fed's annual economic symposium. However, widening impact of the pandemic might continue to levy some support to the safe haven asset Gold.

Crude Oil

On Thursday, WTI Crude prices ended lower by 1.4 percent to close at $67.4 per barrel. Oil prices eased after a brief rally earlier in the week as the Oil production in Mexico was set to resume after the recent outage.

Also, escalating worries over the wide spread of the delta variant led to increased restrictions across borders affecting global supplies as well as demand which further weighed on the prices.

Oil prices traded lower despite the third consecutive weekly fall in US Crude inventories and increasing fuel usage. As per reports from the U.S. Energy Information Administration, Crude inventories dipped over 3 million barrels surpassing the market expectation of a 1.9 million barrel drop.

Oil prices might find some support as worries over a potential hurricane heading the Gulf of Mexico ignited near term supply concerns.

However, looming worries over widespread of the Delta variant of the Covid19 virus might weigh on Oil prices.

Base Metals

On Thursday, Industrial metals ended lower as the Dollar strengthen ahead of US FED Chair Jerome Powell’s speech at the symposium on 27th August i.e., today.

The recent rally in Alumina prices was following a fire at the Jamalco refinery in Jamaica which ignited worries of tighter supply of the Aluminium raw material. The Jamalco plant can produce up to 1.4 million tonnes per year of alumina, which is refined from bauxite. Global alumina production in 2020 was 134.4 million tonnes, according to the International Aluminium Institute. Worries over shortage of primary raw material amid disrupted supply of Aluminium from major producing nation China might continue to support Aluminium prices in the near term.

Copper

On Thursday, LME Copper ended lower by 0.6 percent to close at $9299.5 per tonne as a stronger Dollar amid easing supply worries pressured the prices.

The Chilean miner Codelco, the world's largest copper producer, reached agreement on a new contract with supervisors at its Andina mine. Andina produced 184,000 tonnes of copper in 2020, around 10% of Codelco's total output.

Investors might remain cautious ahead of the U.S. FED Chair Jerome Powell speech scheduled today or cues on the asset tapering timeline.

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