Told Mr. Prathamesh Mallya, Chief Analyst, Angel Broking Ltd.
Mumbai - The primary concern of world governments remained the dismal economic performance of their economies and fears of a recession. Worries over the safety of world citizens persisted due to concerns about a resurgent and stronger second wave of the pandemic occurring in parts of China, Told Mr. Prathamesh Mallya, Chief Analyst, Angel Broking Ltd.
Gold :
He said that, on Thursday Gold prices ended higher by 0.56 percent to close at $1718.5 per ounce amid massive protests erupting in Hong Kong. China plans on implementing stringent security laws in the region. This led to a faceoff with President Donald Trump vowing to retaliate and show solidarity for the people of Hong Kong.
Unemployment claims continued to rise steadily in the U.S, indicating a more extended recovery period post-pandemic than predicted. The economic uncertainty weighed on market sentiments and pushed up the price of the yellow metal.
Silver :
On Thursday, Spot silver prices surged by 0.69 percent to close at $17.4 per ounce. Prices on the MCX increased by 0.35 percent, closing at Rs.48,558 per kg.
Crude Oil :
On Thursday, WTI Crude prices soared over 2.7 percent, closing at $33.7 per barrel amid increases in refining processes and rising demand. This overshadowed the tensions between the two largest economies of the world.
An unprecedented rise in U.S Crude Inventories limited the gains for Crude Oil, according to reports from the U.S Energy Information Administration(EIA).
The critical decision about whether to continue the production cuts undertaken by OPEC and Saudi Arabia is due to be discussed in a meeting. However, Russia’s disapproval over further production cuts pressurized Crude Oil prices.
Restrictions on air and road traffic persisted in many countries of the world, further limiting any more considerable increase in prices of crude oil.
Base Metals :
On Thursday, base metal prices on the London Metal Exchange (LME) ended positive as reports from the largest metal consumer in the world, China, indicated towards increased industrial activity and demand.
Stimulus plans unfurled by the People’s Bank of China included massive infrastructural expenditure, which improved market sentiments and drove up prices.
However, worries of a stiff trade war erupting between the U.S and China persisted, with the U.S pointing fingers towards China for causing the pandemic. These allegations and tensions limited any further gains.
Copper :
On Thursday, LME Copper prices ended higher by 1.4 percent to close at $5332.5 per tonne after economic and industrial activity was restarted in many parts of China, raising hopes of increased demand.
However, continuing fears over a second wave of the pandemic and U.S-China rivalry limited further gains.
It remains to be seen how quickly a vaccine can be developed to help cure the citizens and enable the world to return to a state of normalcy. Meanwhile, world governments have to work together to alleviate the distress of the global population, told Mr. Mallya.
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