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Below are Views On Spot Gold slipped about 2.2 percent to close at $1753.4 per ounce By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

The US Dollar scaled higher which weighed on the Dollar priced commodities

Gold

On Thursday, Spot Gold slipped about 2.2 percent to close at $1753.4 per ounce as the Dollar strengthened denting the bullion metals appeal.

Steady growth in the US manufacturing activities and retail sales despite the increase in the virus infected cases and disrupted supply following the hurricane Ida which supported market sentiments. Stronger than expected US economic figures underpinned the Dollar which pressured the Dollar priced Gold.

However, renewed restrictions across nations following the wide spread of the pandemic and slowdown in China limited the fall in the safe haven asset Gold.

Markets are expected to remain cautious ahead of the US Federal Reserve policy meet for further hints on the timeline of tapering of the asset purchase program. The Federal Open Market Committee meet is scheduled on 21st & 22nd September’21.

Uncertainties over the US central banks stance in the months ahead is expected to keep the market cautious and Gold prices steady.

Crude Oil

On Thursday, WTI Crude ended flat to close at $72.6 per barrel as resuming of supply from the U.S. Gulf of Mexico following two hurricanes and a stronger Dollar weighed on the prices.

However, WTI Crude headed towards weekly gains as bets over revival in demand for Crude and depleting US Crude inventories supported prices earlier in the week.

As per reports from the Energy Information Administration (EIA), US Crude inventories slipped over 6.4 million barrels surpassing the market expectation of a 3.5-million-barrel drop.

Also, the IEA expecting the demand for fuel to recover in the months ahead further supported market sentiments.

Bets over recovery in Oil demand in the months ahead and depleting US Crude inventories is expected to support Oil prices. However, slow growth in China’s economy and widening impact of the pandemic might be a headwind for Crude prices.

Base Metals

On Thursday, most industrial metals on the LME & MCX traded lower as the Dollar strengthened ahead of the US Federal Reserve policy meet scheduled later this month following better than expected US economic data.

Moreover, China’s plans to release more of Copper, Aluminium and Zinc in the markets as the prices continue to remain at elevated levels weighed on market sentiments.

Also, slow expansion in China’s factory and retail activity in August following the fresh outbreaks of the new variant of coronavirus and supply disruptions remained a major set back for the entire complex.

Aluminium prices traded higher during the week on worries of disrupted demand from China. In August’21, China’s Aluminium production was down for the fourth consecutive month as increased power usage limitations in major smelting regions took a hit on the operational activities.

Copper

On Thursday, LME Copper ended slipped over 2.7 percent to close at $9366.5 per tonne as slowdown in China’s economy and a stronger Dollar weighed down the red metal prices.

Uncertainties over the US FED’s stance in the months ahead might keep the markets cautious. However, a stronger Dollar and slowdown in China’s economy is expected to keep Industrial metals under pressure.

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