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Below are Views On Spot Gold slipped over 2.1 percent in the week gone by as the US Dollar & Treasury yield scaled upwards By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Shortage worries amid prospects of higher demand underpinned Base metal prices last week.

Gold

Spot Gold slipped over 2.1 percent in the week gone by as the US Dollar & Treasury yield scaled upwards. US Federal Reserve officials stated that the year-end plans to trim the asset purchase program are still online despite the slow growth in the US labor market which gave strength to the US Currency.

Uncertainties over US Federal Reserve’s stance in the near term is expected to keep Gold prices in check in the coming days. Markets will have a keen watch on the upcoming Federal Open Market Committee meet scheduled to on September 21-22.

However, signs of slowdown in China’s economy, mounting geopolitical tension and the recent outbreaks of the new variant of Covid19 virus might levy some support for the safe haven Gold.

A stronger Dollar ahead of the key US economic data scheduled later in the week might keep the bullion under pressure.

Crude Oil

Last week, WTI Crude ended higher by 0.6 percent as worries of tighter supply from US helped Oil prices regain lost ground towards the end of the week.

However, China releasing its Crude reserves and a stronger Dollar weighed on the prices. China’s plans to sell its state crude oil reserves to few domestic refiners in an attempt to ease prices for manufacturers.

Also, lower than expected withdrawal of US Crude stocks in the week ending on 3rd September’21 undermined sentiments earlier in the week.

US Crude inventories ended lower by 1.5 million barrels, much lower than the market expectation of a 4.6-million-barrel drop, data as per the Energy Information Administration.

Moreover, world's top exporter Saudi Arabia slashing crude prices for Asia, slow growth in China’s economy and widening impact of the pandemic further weighed on Oil prices.

Slow resumption of the operational facilities at the Gulf of Mexico following the Hurricane Ida coupled with US-China trade bets might support Oil prices in the week ahead.

Low output from US amid expectation of increasing demand might help Oil extend the gains from the past week.

Base Metals

Most Industrial metals on the LME ended lower as worries of potential shortage in the global markets underpinned the prices, with Aluminium and Nickle posting the highest gains amongst the pack.

Mounting supply threats for Aluminium from top producer China has helped Aluminium prices outperform its peers in 2021.

Nickel prices rose over 4 percent on the LME and over 5 percent on the MCX in the week gone by as surge in demand from the Electric Vehicle producers and the stainless-steel segment amid depleting Nickel inventories across exchanges ignited worries of potential deficit in the global markets.

However, a stronger US Dollar, prospects of tapering od the asset purchase program by the US FED and slow growth in China’s economy capped the gains for the industrial metals.

Disrupted supply chain amid a promising demand outlook is expected to continue supporting industrial metal prices in the week ahead.

Copper

Last week, LME Copper ended higher by 2.8 percent to close at $9694.5 per tonne as bets on revival in global demand outpaced worries of bleak demand prospects from China and supported the red metal prices.

Mounting worries of shortage in the global markets amid prospects of surge in demand might continue to support industrial metals.

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