Mr. Prathamesh Mallya, AVP- Research, Non-Agri Commodities and Currencies, Angel Broking Ltd

Increased coronavirus cases across the world boosted appeal for the yellow metal while denting the appeal for Crude Oil and base metals. Increased Oil production from Libya amid bleak demand prospects, further pushed the Crude prices lower. Uncertainty over additional stimulus aid by the U.S. further dents Gold, Oil and Base metal prices.


Spot gold gained 0.05% and closed at $1901.7 per ounce amid increased worries over the pandemic. Uncertainties ahead of the upcoming U.S. presidential elections boosted the appeal for the yellow metal among the investors. However, appreciating U.S. Dollar capped the gains.

An alarming increase in coronavirus cases in the U.S., and the reinforcement of lockdown in many European nations dented the investors’ appetite for risk. Majority of investors thus shifted towards the safe haven, Gold.

U.S. House Speaker Nancy Pelosi hoped for a possible deal over the relief fund with White House Officials and vowed to continue going after financial aid for the pandemic-shackled U.S. economy.

A weaker U.S. Dollar and worries over the spread of coronavirus might continue driving investors towards Gold. Gold prices are expected to trade higher on MCX in today’s session.

Crude Oil

WTI Crude ended lower by 3.2% and closed at $38.6 per barrel amid the widening impact of the virus. Recovery in Libyan Crude production further pushed down the Oil prices.

Libya’s Crude Output increased as its largest oil field, Sharara resumed production amid bleak global demand prospects further denting the Oil prices.

Libya’s National Oil Corp lifted force majeure on its last facilities, further causing worries of oversupply in the global Oil market.

An alarming increase in coronavirus cases in Europe and North America led to a reinforcement of lockdown which disrupted the already shackled global Oil market and further extended the losses in Oil prices. The imposition of new lockdown further clouded the demand for Crude.

Furthermore, the rise in COVID-19 cases and increased supply from Libya might further weigh down the Crude prices. Oil prices are expected to trade lower on MCX in today’s session.

Base Metals

Base metals on the LME ended in the red as the U.S. Dollar strengthened. Furthermore, a surge in coronavirus cases across the globe negatively affected the market segments.

No signs of additional stimulus aid by the U.S. underpinned the Dollar, making industrial metals expensive for other currency holders.

China’s Aluminium purchases eased after importing record levels in September’20. Revival in international prices led to the closure of the arbitrage window. China’s import of unwrought Aluminium & Aluminium products declined by 17.1% and stood at 355,999 tonnes.

However, China’s rising GDP supported industrial metal prices. China’s GDP rose about 4.9% from July’20 to September’20.


LME Copper ended lower by 1.26% and closed at $6781 per tonne on account of uncertainty over the additional stimulus aid by the U.S. Appreciating Dollar further weighed down the red metal’s prices.

An alarming increase in the COVID-19 cases across the globe, and stalled talks over new relief bill by the U.S. might further weigh down industrial metal prices. Copper prices are expected to trade sideways on MCX in today’s session.

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