Prathamesh Mallya, AVP Angel Broking-- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd
By Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies, Angel Broking Ltd.
On the resurgence of the number of positive cases of COVID-19 around the world, almost every aspect of the market observed limited gains and slower activities. Experts already dread the post-pandemic condition as this massacre of the world economy will take much longer to heal.
Tensions between the two economical super-powers were put to halt on the delay of the review of phase one trade deal signed earlier in 2020, which was aimed at giving China more time to increase their purchases from the U.S.
The Spot Gold prices last week ended lower by 0.2 percent as the U.S Dollar revival dented the appeal for the safe-haven yellow metal. Despite the stalled recovery in the Eurozone and the widening worries of U.S. policymakers expressed over the pandemic conditions, the prices of gold are still leading to the second consecutive weekly loss.
The rough path to recovery was suggested by the minutes given by the U.S. Federal Reserve in the policy meeting held on 28th and 29th July of 2020. The loss in gold prices was limited by the issue raised by the policymakers about the need for additional stimulus support by the U.S. Federal Reserve. The gold prices further found support due to the surge in unemployment claims of over one million in the U.S. in the week ending on 15th August’20.
The WTI Crude prices last week ended higher by 0.8 higher because of the falling U.S inventories. Crude oil prices were also underpinned because of China’s growing demand. China’s state-owned oil companies have booked tankers from August to September 2020, to carry about 20 million barrels of U.S. crude oil as reported by U.S. oil traders, shipbrokers, and Chinese importers.
The outlook of crude oil was undermined due to the resurgence of COVID-19, which slowed down the shackled oil market even further.
The crude oil prices might be supported due to the more than half of oil productions shutting off in Mexico Weaker because of the severe storm.
The LME Base Metal prices last week ended on a positive note and Zinc was declared to be the highest gainer. The industrial metal prices might remain elevated due to the expectations revolving around the easing conditions of U.S. and China relations and the solid growth of China’s economy. The revival of the economy of the biggest metal consumer was hinted in July of 2020 due to the increasing auto-sales and robust factory activity numbers posted by China.
The depleting inventories on the LME pushed the prices of copper higher. LME copper prices ended higher by 2 percent. The resurgence of the virus limited the uptrend and clouded global economic conditions. The LME verified warehouse might support the red metal prices because of the plummeting copper inventories.
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign me up for the newsletter!
Notify me of follow-up comments by email.
Notify me of new posts by email.
2014 The Global Indian New Network (TGINN)