Precious Metals Preview:
COMEX Gold futures saw a massive tumble in last session as media reports noted that Pfizer Inc and BioNTech’s COVID-19 vaccine appeared to work against a key mutation in the highly transmissible new variants of the coronavirus discovered in the UK and South Africa. The yellow metal had tanked Wednesday after US Treasury yields soared as traders felt that a win for Democrats in a Senate runoff race in Georgia may signal more fiscal spending. Yields soared further with the benchmark US 10 year bond yield spiking near one year high of 1.10%. Gold broke well under $1900 per ounce mark and lost more than 3% to close at $1848 per ounce. These are the lowest levels in three weeks. COMEX Silver also tanked around 6.49% to end at $25.49 per ounce. The bullion futures did not get much help following a drop in US nonfarm payrolls. On the MCX, Gold futures for February crashed 4.10% to close at Rs 48818 per 10 gram while the benchmark Silver futures lost 8.74% to close at Rs 63850 per kg.
WTI Crude oil futures extended their advance as US equities remained supported and traders focused on the broad trend in supplies. Abu Dhabi raised pricing for February sales of its main crude grade after similar increases by Saudi Arabia, Organization of the Petroleum Exporting Countries (OPEC) largest producer. Government-owned Abu Dhabi National Oil Co. set Murban crude at a premium of 75 cents a barrel to the regional benchmark, according to a notice from the producer. That’s 25 cents more than in January. WTI Crude ended at $52.72 per barrel, up 3.72% on the day. MCX Crude also added 1.36% to close at Rs 3789 per barrel after hitting above Rs 3800 per barrel mark for a while.
Base Metals Preview:
COMEX Copper futures eased a bit from eight year high of $3.70 per pound as traders focussed on the US nonfarm payrolls data. After reporting slowing job growth over the past few months, the Labor Department released a report on Friday showing a decrease in US employment in the month of December. The Labor Department said non-farm payroll employment fell by 140,000 jobs in December after climbing by an upwardly revised 336,000 jobs in November. However, the US unemployment rate came in at 6.7% in December, unchanged from November. Copper ended marginally lower at $3.69 per pound. US stocks surged further in last session. The major averages all finished the session at new record closing highs. MCX Copper futures ended down 1% at Rs 620.80 per kg.
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