Expectations over additional stimulus aid for payroll assistance demanded by the U.S. President Donald Trump supported Base Metal and Crude Oil prices while denting appeal for the yellow metal in the last session. China’s robust industrial growth further supported base metal prices. Crude Oil prices were supported by reduced supply and decline in the U.S. oil inventory levels.
Spot Gold ended higher by 0.31% and closed at $1893.1 per ounce as rising coronavirus cases in Europe and political uncertainties in the U.S. supported Gold prices.
However, appreciating Dollar limited the gains for Dollar-denominated Gold. U.S. President Donald Trump called off negotiations over additional stimulus aid until the upcoming U.S. elections. He suggested Congress to infuse $25 billion in the new payroll assistance to help workers of U.S. passenger airlines maintain their jobs.
Increased hopes over further coronavirus relief aid fund by the U.S. boosted investors’ risk appetite while denting the demand for safe haven, Gold. Additional payroll assistance by President Trump to help workers fight pandemic is likely to support Gold.
WTI Crude gained over 3% and closed at $41.2 per barrel amid worries over Oil supply. Expectations of additional stimulus aid by the U.S. further supported Oil prices.
The energy companies contributing around 17% of the Crude output were forced to shut as Hurricane delta approached the U.S. Gulf coast, creating havoc.
Failed talks between Norwegian Oil and Gas Association and the union led to the closure of Norwegian offshore oil and gas fields. Oil prices were further supported as more workers joined the strike over the wage issue risking an output of 330,000 barrels of oil daily.
According to reports released by the Energy Information Administration, U.S. Crude inventory rose marginally by 501,000 barrels. However, a halt in nearly 1.5 million bpd of Oil output might extend support to Crude prices.
Base metals on the LME ended in the green amid hopes over additional payroll assistance by the U.S. Increased demand from China for industrial metals further supported the prices.
China’s industrial activities increased rapidly in September’20, reflecting increased overseas demand and stimulus-driven infrastructural growth.
China’s official manufacturing Purchasing Manager’s Index stood at 51.5 in September’20 as reported by the National Bureau of Statistics.
However, worries over the second wave of coronavirus, appreciating Dollar, and weak demand prospects ahead of weeklong Chinese holiday capped the gains.
LME Copper ended higher by 0.06% and closed at $6683 per ton as upcoming labor negotiations in the Chilean mines having a combined capacity of 2.8 million tons supported the red metal’s prices.
Robust demand from China for industrial metals might extend further support.