Gold and silver prices are expected to trade with a mixed bias - ICICI Direct
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Gold
* Comex gold prices declined 0.98% on the back of a stronger dollar. However, concerns over rising inflationary pressures, US China geopolitical tensions and rise in Covid cases have offset the downside pressure on gold
* The dollar index surged by 0.84% on Friday, making bullion more expensive for holders of other currencies
* The consumer spending data from US fuelled worries on aggressive monetary policy action from the Fed to combat a surge in prices
* Gold and silver prices are expected to trade with a mixed bias on the back of higher inflation and stronger dollar index. Further, investors will remain cautious on the Fed’s monetary policy meeting on November 2-3. In this meeting, the Fed is expected to announce when it will start tapering
Copper
* Copper prices fell 0.82% on Friday on the back of weak Chinese factory output, debt problems in the real estate market and an energy crunch
* At the same time, a surge in dollar index added further pressure to copper prices
* Chile just registered its worst month for copper production since February as the world’s biggest supplier of the metal was hit by labour disruptions and poor quality ore. September’s output was down 6.9% from a year earlier and 3.4% from August, according to data released on Friday by the country’s bureau of statistics
* Base metal prices are expected to trade with a mixed bias on the back of lower inventory and stronger dollar index. Further, investors are now focused on China PMI and ISM PMI data from the US, which will be a leading indictor for base metals
Crude oil
* US crude prices settled higher on Friday supported by expectations that Opec, Russia and their allies would maintain production cuts
* US natural gas futures declined 3% on Friday after Russian President Vladimir Putin said Russia could start pumping gas into European storage
* According to the Baker Hughes report released on Friday, US oil rigs increased by one to 444 this week while gas rigs also gained by one to 100, the highest since mid-September
* Crude oil prices are expected to trade with a positive bias on the back of stronger domestic demand from the US. However, upside gains may be prevented by return of Iran supply
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