Precious Metals Preview:
COMEX Gold futures saw a good bounce in last session after testing two month low as good investment demand boosted sentiments after recent spree of losses. The metal added more than 1.30% to close at $1815 per ounce. MCX Gold futures ended at Rs 47270 per 10 grams, up 1.20% on the day. Global gold Exchange Traded Funds (ETFs) saw inflows of 13.8 tonnes (t) (US$1bn, 0.4%) in January, after two consecutive months of outflows in November and December, which had totalled 148.8t. Global assets under management (AUM) now stands at 3,765t (US$226bn), just 4% shy of the intra-month record 3,915.8t (US$244bn) set in early November last year. North American funds had outflows of 6.3t (-US$302.7mn, -0.2% AUM) while holdings in European funds grew by 17.5t (US$1.1bn, 1.2%).The Funds listed in Asia had minimal net inflows of US$19.2mn (0.3%) while other regions had inflows of 2.7t (US$181.9mn, 4.9%). Global Gold ETF Asset Under Management (AUM) now stands at 3,765t, just 4% shy of the intra-month record set in early November 2020.
WTI Crude oil futures jumped to fresh one year high above $57 per barrel in last session as traders continued to reassess supply dynamics. The producing cartel OPEC+ Joint Ministerial Monitoring Committee’s meeting indicated changes in production quotas being announced for February and March. The global oil cartel noted that the gradual progress in vaccine rollout will boost the global economy and oil demand and highlighted the importance of meeting agreed upon supply curbs and compensating for past overproduction when necessary. OPEC+ expects oil inventories to fall below the five-year average by the middle of 2021. Meanwhile, the US Energy Information Administration (EIA) reported a crude oil inventory draw of 1 million barrels for the last week of January. The EIA estimate compared with a build of 4.4 million barrels reported for the third week of January. MCX Crude ended up 0.83% at Rs 4144 per barrel after hitting a high of Rs 4180 per barrel.
Base Metals Preview:
Copper rallied on Friday, hitting two week high and ending up 2.45% at $2.64 per pound. The US stocks surged further on Friday with Nasdaq and the S&P 500 hitting new record closing highs. Global equities are witnessing mixed movement and there is a sense that the Covid-19 infections in the US have peaked out. Vaccination drives also continue to be rolled out swiftly. The US dollar index also consolidated above 91 mark, keeping overall mood under check for Gold. Demand for electronic vehicles is on the rise and could turn out to be a significant driver for the metal in medium term. MCX Copper ended at Rs 610.10 per kg, up 2.27% on the day as good buying emerged following the break above Rs 600 mark.
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