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Below are Views On Commodity Article 10th November 2021 By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel One Ltd 

Boost in fuel demand amid tight supplies continues to support Oil prices 

Gold

On Tuesday, Spot gold prices rose by 0.4 percent to close at $1831.5 per ounce.  A slightly stronger US Dollar ahead of the key US economic data kept a lid on the Dollar denominated commodities like Gold.

Investors are expected to have a keen eye on the US Consumer prices data given the ongoing inflation fears and tight supply market.

The US Federal Reserve keeping interest rates near zero in the policy meet conducted last week hinted towards a Dovish approach in turn boosting appeal for Gold in the earlier trading sessions.

Mounting inflation woes and an accommodative approach by major central banks has created a supportive environment for the safe haven, Gold.

Supportive monetary approach and a weaker US Dollar is expected to push Gold higher in today’s session.
 

Crude Oil

On Tuesday, WTI Crude soared over 2.7 percent to close at $84.2 per barrel. Bets over revival in global demand amid a tight supply market continued to underpin Oil prices.

US withdrawing the travel restrictions coupled with resumption in global economic activities is expected to boost demand for Crude further pressuring the already tight supply chain.

OPEC continuing with the planned increase in output despite revival in global demand is expected keep Oil prices elevated in the week ahead.

However, worries over return of Iranian Oil in the global markets, increasing US Crude stocks and hike in prices by Saudi Arabia might turn out to be a setback for Crude prices.

Bets over increasing demand amid a tight supply market is expected to keep Oil prices elevated.

Base Metals

Most Industrial metals on MCX traded lower in line with the international markets as escalating concerns over the ongoing property crisis in China undermined the demand prospects for the base metals complex.

Also, China’s manufacturing PMI contracted for the second consecutive month in October’21 as increasing raw material prices, environmental norms and limitations on energy usage took a hit on their manufacturing activities.

As per reports from the National Bureau of Statistics (NBS), China’s official manufacturing Purchasing Manager's Index (PMI) slipped down to 49.2 in October’21 from 49.6 in September’21.

However, a positive demand outlook for industrial metals with the $1 trillion U.S. infrastructure bill being passed last week amid depleting inventories reignited shortage concerns limiting the fall in prices.

Copper

On Tuesday, MCX Copper prices ended lower by 0.53 percent as uncertainties arising from China’s economy clouded the outlook for Copper and other industrial metals.

The ongoing property crisis in China might overshadow worries over tightening supplies and push prices lower.

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