Prathamesh Mallya, AVP, Research- Non Agri Commodities and Currencies, Angel Broking Ltd
World governments were concerned about the increasing number of coronavirus cases in certain parts of the world, including China. The main goal remained on how to make a return to normalcy while addressing the safety and unemployment woes of the citizens.
Gold
On Thursday, Spot gold prices ended lower by 0.25 per cent to close at $1722.6 per ounce. U.S economic data pointed towards economic recovery, and this boosted market sentiments and the risk appetite among investors leading to the decrease in the price of the yellow metal.
The number of unemployed people in the U.S is slowly decreasing as businesses are reopening in many states.
Investors took shelter under the U.S. Dollar, which is also considered as a hedge against global uncertainties like the ongoing Covid-19 pandemic. However, the number of cases per day in both the U.S and China remains exceptionally high, raising worries over an extended recovery period. This factor limited the downfall in the gold prices.
Silver
On Thursday, Spot silver prices ended higher by 0.63 per cent to close at $17.5 per ounce. Prices on the MCX ended lower by 0.97 per cent closing at Rs.47861 per kg.
Crude Oil
On Thursday, WTI Crude prices ended higher by 1.20 per cent to close at $38 per barrel as the OPEC countries tried to arrive at a consensus regarding the scheduled production cuts.
This was evident from the report of the International Energy Agency(IEA), which stated that global oil supplies had decreased by around 12 million barrels.
However, the gains were capped since there was a rise in Crude Inventory Levels in the U.S, which pointed towards weak demand in the world market.
Base Metals
On Thursday, base metal prices on the London Metal Exchange (LME) ended positively after infusion and stimulus measures were announced by the People’s Bank of China(PBOC). China’s Central bank announced its plans to infuse liquidity in its financial markets in the second half of 2020. This strengthened the price of industrial metals.
U.S-China tensions increased once again as protests erupted in Hong Kong over stringent security laws announced by the mainland authorities. The U.S has continued to point fingers towards China over the poor management of the pandemic.
Copper
On Thursday, LME Copper ended higher by 1.34 per cent to close at $5805 per tonne as central banks around the world announced stimulus plans to counter the enormous losses incurred during the lockdown.
It is hoped that the world will soon return to a state of normalcy. It is pertinent that governments tackle the issue of poverty around the globe and invest in the research for potential vaccines and efficacious treatment.
Post a Comment