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Below are Views On Spot gold ended lower over 0.54 percent to close at $1760 per ounce By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd 

Tight Oil supply continues to push Crude prices higher

Gold

On Tuesday, Spot gold ended lower over 0.54 percent to close at $1760 per ounce. Gold erased most of its gains from the previous session as the Dollar strengthened ahead of the key US economic data pushing the Dollar priced commodity lower.

Even the US treasury yield scaled higher on expectation of reduced stimulus and higher interest rates which further pressured the non-interest-bearing Gold.

After witnessing slower than expected expansion in the US Job market and weakening consumer confidence, markets will have a keen eye on the U.S. non-farm payrolls scheduled during the week. Any positive US economic data set will increase bets towards a tighter monetary policy by the US FED which would weigh on Gold.

However, inflation worries and signs of tension between US & China limited the fall in Gold prices.

Revival in the US Dollar and increasing US Treasury yield is expected to keep Gold prices under pressure.

Crude Oil

On Tuesday, WTI Crude gained about 1.7 percent to close at $78.9 per barrel as OPEC planning to continue with the scheduled expansion in production activities rather than further increasing output continued to underpin Oil prices.

The Oil exporting group ignored the calls from major Oil consuming nations to increase production in order to support the economic recovery which eased worries of oversupply in the markets and pushed prices higher.

The gains for Crude were capped as appreciation in the US Dollar made the Dollar denominated Oil less desirable for other currency holders.

Also, increasing power usage limitations in China and worries of impact of the virus on the global economy weighed on market sentiments.

OPEC and its allies sticking to the production scheduled amid mounting worries of a tighter supply and prospects of increasing global demand might continue to support Oil prices.

Base Metals

On Tuesday, Industrial metals on the MCX remain steady as the Dollar gained strength ahead of a key US employment data due later in the week for cues on the Federal Reserve’s stance in the months ahead.

Also, low volumes in the markets following the week long public holiday in top metal consumer China kept the prices in check.

However, increasing energy prices and stern environmental norms in China might keep the supply chain tight and levy some support Base metal prices.

China imposing production curbs on high-polluting industries such as smelting to cut power use and emissions ignited potential shortage worries in global markets.

Copper

On Tuesday, LME Copper ended lower by 0.83 percent to close at $9174 per tonne as reflecting low trading volumes and a stronger US Dollar.

Appreciating US Dollar and signs of tension between US & China is expected to keep the Base metal prices in check.

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