Stock Market

Gold remains steady while Oil recovers lost ground

Gold remains afloat while Oil prices recovered after US Crude inventories plunged.


On Thursday, Spot gold ended marginally lower by 0.05 percent to close at $1802.6 per ounce. The bullion metal remained afloat on the back of a softer US Dollar and retreating benchmark US Treasury Yield boosted appeal for the bullion metal. However, a steady recovery in the US economy weighed on the safe haven asset, gold.

Lower bond return kept the yellow metal prices elevated in this week as high interest rates increases the opportunity cost of holding Gold.

The minutes of the US Federal Reserve policy meet last month indicated towards a sooner than expected tapering of the asset purchase program. Despite mounting inflation worries, a relatively higher unemployment figures still remained a major concern for the US Central bank. However, no further hints on a tighter expansionary policy undermined the US Dollar and the treasury yield.

Increase in the number of Delta variant COVID-19 cases ignited worries over extension of lockdown in major economies which might further derail the economic recovery.

Crude Oil

Yesterday WTI Crude prices gained over 1 percent to close at $72.9 per barrel while MCX Crude prices gained about 0.6 percent to close at Rs.5423 per barrel.
Crude Oil regained lost ground after the US Crude inventory plunged over 6.9 million barrels surpassing the market expectation of a 4-million-barrel decline, data as per the Energy Information Administration.
Oil remained under pressure earlier in yesterday’s session following no clarity by the OPEC group on the production stance in the months ahead dented market sentiments. The Oil exporting group failed to reach an agreement to raise supply in order to meet rising global demand after Saudi Arabia, the de facto leader of the group, and UAE were unable to strike a deal.
Also, worries over tighter pandemic led curbs in many regions of Asia, Australia and Europe following the increase in the Delta variant cases further pressured on the prices.
As per reports from the Energy Information Administration (EIA), US Oil production is projected to decline by 210,000 barrels per day (bpd) in 2021 to 11.10 million bpd, lower than the earlier forecast of a 230,000-bpd drop.

Base Metals

Aluminium and Copper declined the most amongst the pack in yesterday’s trading session on the LME. While a weaker US Currency levied some support for the Dollar denominated Industrial metal prices; prospects of an early tapering of the asset purchase program tapering of the asset purchase program by the US Federal Reserve pressured the prices.
After the successful first round of China’s State Reserve metal auction, China’s National Food and Strategic Reserves Administration announced to continue releasing inventories in the times ahead in an attempt to ease commodity prices.
The metal auction on 5th July’21, which offered 100,000 tonnes of Copper, Aluminium and Zinc, concluded on the first of the two days allotted for the sale. Prospects of increase in global supply of the industrial metals and wild spread of the delta variant in major economies might turn investors cautious.


Yesterday, LME Copper ended lower by 1.4 percent to close at $9323.0 per tonne on expectation of easing of the policy by China following the weakness in the world’s largest metal consuming economy.

This article was shared with Prittle Prattle News as a Press Release by PRNewswire.

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