Mumbai - Economies around the world deliberated upon how to restart production and export facilities by relaxing lockdown related measures. However, worries over a new and more substantial wave of coronavirus, returning in the winter months continued to weigh on market sentiments.
Mr. Prathamesh Mallya, Chief Analyst, Non Agri Commodities and Currencies, Angel Broking Ltd. told about market situation. He gave detailed information about the business being done in the market in the context of gold, silver, crude oil, base meta as following.
Gold
On Thursday, Spot Gold prices ended higher by 0.82 per cent to close at $1729.3 per ounce as expectations of a lengthy recovery period post-pandemic boosted the cost of the yellow metal.
In certain parts of the world, like China and South Korea, new cases of coronavirus displayed a sudden jump, raising worries over how to tackle a resurgent virus.
Aggressive stimulus measures and economical packages announced by central banks around the world, coupled with low-interest rates supported gold prices. President Donald Trump expressed his dissatisfaction with China in a scathing comment where he berated China for not being able to control the spread of the virus.
Silver
On Thursday, Spot Silver prices ended higher by 1.47 per cent to close at $15.9 per ounce. Prices on the MCX surged over 2.7 per cent to close at Rs. 44135 per kg.
Crude Oil
On Thursday, Crude Oil prices soared over 8.9 per cent to close at $27.6 per barrel following an announcement by the Energy Information Administration that U.S Crude Inventory Levels would deplete further in the following months.
Aggressive and calculated production cuts were announced by Saudi Arabia as well as most of the allies of OPEC to deal with the slump in demand. In addition, the restarting of some industrial activities has supported the rise in oil prices.
However, the continuing restrictions on air and road traffic worldwide dented any further growth in the oil prices.
Base Metals
On Thursday, most base metals ended lower as persisting worries over a recalcitrant virus continued to weigh heavily on the market.
The prices of base metals further diminished after the announcement by the U.S Federal Reserve Chairperson Jerome Powell that the economic recovery in the country would require a much more extended period than predicted earlier.
Copper
On Thursday, the London Metal Exchange (LME) Copper prices ended slightly lower by 0.42 percent amid worries that removing the lockdowns would adversely affect the health of millions of people. Worsening of U.S- China relations threatened to spiral into a stiff trade war as President Donald Trump pointed fingers at China for failing to control the situation.
It remains to be seen how stringent social distancing norms can be appropriately balanced with the reopening of major economies. It seems that the world is heading to some degree of normalcy, and the concerns of the large numbers of unemployed workers will have to be met.
0 Comments