Precious Metals Preview:
COMEX Gold futures fell sharply as a firm undertone in the US dollar and a reduction in India’s precious metals import duty weighed on the commodity. COMEX Gold dropped around 1.5% to test a two week low of $1830 per ounce. Silver slumped sharply amid a continued unravelling of last week’s social media fuelled buying spree. The white metal crashed around 9.5% though a more than 2% recovery in Asia took the metal above $26.26 per ounce. US Covid-19 cases are showing some moderation and Gold seemed to be tracking the slide in Silver as well as the smart run in US dollar index which hit a two month high above 91 mark. MCX Gold fell 2% to close at Rs 47795 per 10 grams while Silver tumbled 8.40% to end at Rs 67475 per kg.
WTI Crude oil futures broke above their recent range and soared near $55 per barrel as rising global equities boosted risk appetite for the commodity. The WTI Crude futures hit a one year high near $55 per barrel and currently trade around the same mark. Oil market fundamentals are slowly turning decisively positive as the world is slowly coming back to pre-pandemic level. The oil market is likely focusing on OPEC Joint Ministerial Monitoring Committee tomorrow for getting a clarity on supply outlook. MCX Crude oil futures moved up in tandem with global cues and closed up 2.64% at Rs 4008 per barrel.
Base Metals Preview:
COMEX Copper eased but saw some buying support in US trades. The US stocks soared sharply as earnings took centre stage. Upbeat economic cues also supported sentiments. Americans are a little more optimistic about the outlook for the U.S. economy as vaccinations pick up speed and Covid-19 cases come off their peak. The IBD/TIPP Economic Optimism Index, an early monthly read on consumer confidence, gained 1.8 points to 51.9 in February. Readings above the neutral 50 level reflect optimism. This helped cap losses for the red metal as data earlier in the day showed that Eurozone economy remained under stress. Due to the restrictions related to Covid-19, the euro area economy contracted in the fourth quarter after bouncing back in the preceding three months, preliminary flash estimate published by Eurostat showed on Tuesday. Gross domestic product fell 0.7% sequentially, in contrast to a sharp growth of 12.4% in the third quarter. The red metal now trades at $3.51 per pound, down 0.37% on the day. MCX Copper closed around Rs 590 per kg, down 0.56% on the day.
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