MCX Gold Slides, COMEX Gold Under $1600 Per Ounce.
COMEX Gold futures slipped sharply as financial markets saw a heavy pounding. Gold stayed supported earlier in the week as the coronavirus continued to spread rapidly outside China and people in around 50 countries have now been infected. However, the COMEX Gold futures fell more than 3% on 28th February 2020 and tested around ten day low under $1590 per ounce. Gold prices slipped in Indian spot markets this week after hitting record highs above Rs 43000 per 10 grams. The demand for Gold in India has been hurt in last few months on soaring prices and the trend is unlikely to turn around in near term given the massive jump in prices above the critical threshold of Rs 40K. Domestic gold demand eased by 9% to 690.4 tonnes in 2019 from the previous year. MCX Gold futures tanked as well, topping at a lifetime high of around Rs 43600 per 10 grams. The counter endured heavy losses afterwards, closing at Rs 41300 per 10 grams.
Copper Slides To Three Week Low.
COMEX Copper futures continued to correct last week as risky assets extended losses amid continued fears that the coronavirus outbreak could escalate into a pandemic. The red metal has been under stress on demand concerns and worries that the inventories of the commodity would rise given the sluggish pace of economic activity in China. The coronavirus outbreak has the potential to become a pandemic and is at a decisive stage, the World Health Organization noted. This hurt Copper intensely and the commodity fell to $2.52 per pound – testing lowest levels in nearly three weeks. MCX Copper futures fell under Rs 420 per kg mark before witnessing some buying support. Copper also eyed the recent the International Copper Study Group update which estimated global refined copper deficit at 384,000 tonnes during January-November 2019, compared with 408,000 tonnes in January-November 2018.
Crude Suffers Hefty Losses.
WTI Crude oil futures saw a massive selloff amid a deep slide in world equities as demand worries and risk averseness hurt the counter. The WTI Crude oil dropped under the critical $50 per barrel mark and ended under $45 per barrel. MCX Crude oil also sustained large losses and fell near Rs 3200 per barrel. US Energy Information Administration (EIA) reported an inventory build of 500,000 barrels for the week to February 21st 2020. The EIA said that at 443.3 million barrels, crude oil inventories were below the five-year seasonal average. EIA reported that production of gasoline in US averaged 9.8 million bpd in the week to February 21, compared with 9.5 million barrels per day (bpd) a week earlier. The EIA also said distillate fuel inventories fell 2.1 million barrels last week. Production of distillate fuels averaged 4.8 million bpd last week, down from 4.9 million bpd a week earlier.
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