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Below are Views On Spot gold scaled higher by 0.21 percent closing at $1796.7 per ounce By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd 

Gold

On Wednesday, Spot gold scaled higher by 0.21 percent closing at $1796.7 per ounce. A softer US Dollar and retreating US treasury yield boosted appeal for the safe haven Gold ahead of the important central bank meets.

Also, worries over the ongoing inflation sticking around for longer than expected continued to support Gold as it is widely considered as a hedge against inflation and currency debasement.

A stronger US Dollar and boost in markets risk appetite kept Gold under pressure earlier in the week. US Federal Reserve Chair Jerome Powell’s comments last week stated that they will soon begin the withdrawal of economic support which further pressured Gold prices.

Investors are expected to have a keen eye on the upcoming US Federal Reserve meet scheduled in the first week of November 2021 and the meetings of the Bank of Japan and European Central Bank scheduled on Thursday i.e., today.

A stronger Dollar ahead of major Central bank meeting scheduled during the week might keep Gold under pressure.

Crude Oil

On Wednesday, WTI Crude plunged over 2.3 percent to close at $82.7 per barrel. Oil prices witnessed a huge dip after a solid rally earlier thus month as US Crude stocks rose higher than expected last week.

As per reports from the Energy Information Administration, US Crude inventories increased by 4.3 million barrels in the week ending on 22nd October 2021 surpassing market expectation of a 2 million barrels.

However, Oil prices headed towards weekly gains as potential shortage concerns amid increasing global demand strengthened market sentiments. OPEC & its allies sticking to its scheduled increase in production despite of a tight global Oil market has also been supportive for Crude prices.

While Coal and energy prices have eased in China following government intervention, prices remain elevated in the rest of the world as falling temperature is expected to increase demand for fuel.

Sudden spike in the US Crude inventories might continue to keep Oil under pressure in todays session.

Base Metals

On Wednesday, Aluminium and other industrial metals on the MCX traded lower in todays session, in line with the international markets, as a dip in coal prices eased shortage concerns.

Aluminium prices on the LME & MCX plunged over 5 percent, posting the highest losses amongst the pack. China’s Thermal Coal futures prices plunged after their state planner asked the prime coal-producing regions to investigate and regulate illegal storage sites.

Depleting inventories, mounting inflation worries and optimism over resumption in global economic activities have been supportive for the Base metals complex earlier this month. However, lowering demand from smelting capacities might be a setback for the industrial metals in the coming weeks.

Copper

On Wednesday, LME Copper ended lower by 2.5 percent whereas MCX Copper prices dipped about 2.1 percent as easing coal prices amid uncertainties arising from top metal consuming nation China pressured the leader metal.

Copper traded lower despite of the potential supply threats arsing from Peru. Protestors blocked the road used by Peru's Antamina copper and zinc mine earlier this week after the company failed to honor its commitments to the local area. Another local group has been protesting on the road leading to the Las Bambas copper mine in Peru since last week for similar reasons. Peru, the world's No. 2 copper producing nations, produced 2.15 million tonnes in 2020.

Falling Coal prices might continue to keep industrial metals under pressure.

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