The sole prerogative of world governments remained focussed on how to manage the surge in coronavirus cases while ensuring that the economy does not head into a recession. The threat of the second wave of the coronavirus continued to persist in all the major economies of the world.
On Monday, Spot Gold prices ended marginally higher by 0.05 percent to close at $1771.5 per ounce. The steadily increasing tensions surrounding the virus dented hopes of a return to normalcy and boosted the prices of the safe-haven asset, gold.
Pragmatic and practical stimulus packages unfurled by central banks in addition to interest rates hovering near zero helped to increase the price of the yellow metal.
However, the appreciating cost of the U.S Dollar made gold expensive for other currency holders and limited any further rise in the price.
On Monday, Spot silver prices ended higher by 0.62 percent to close at $17.9 per ounce. Prices on the MCX ended lower by 0.50 percent, closing at Rs.48123 per kg.
On Monday, WTI Crude prices ended higher by 3.14 percent, closing at $39.7 per barrel as an all-round recovery was noted in the Euro Zone.
Positive trade data generated by China added to the increase in Crude Oil prices.OPEC supply cuts with nearly 90 percent compliance in May’20 helped in keeping Crude prices afloat. The OPEC countries are yet to make a decision regarding the continuance of aggressive production cuts in the following months of 2020. Businesses reopened in many parts of the world, driving down unemployment woes significantly.
However, coronavirus cases continued to rise significantly in addition to restrictions on air traffic, which limited the gains.
On Monday, base metal prices on the London Metal Exchange (LME) ended higher as increasing industrial activities in China pointed towards strengthened demand. Industrial inventories depleted sharply in the Shanghai Exchange, coupled with a steady improvement in base metal prices.
However, tensions between the U.S and China continued to flare with the U.S blaming China for not being able to contain the virus. This factor, coupled with improving U.S Dollar prices, limited the rise in the cost of base metals.
On Monday, LME Copper ended marginally higher by 0.08 percent to close at $5961.5 per tonne as uncertainties surrounding the pandemic raised fears of mine shutdowns and decreased supply worldwide.
It remains to be seen whether countries around the world can join hands and tackle the virus with a potentially potent vaccine and improved medication. People around the world have to be reassured, and the economy has to be salvaged in order for the world to return to normalcy.