Precious Metals Preview:
COMEX Gold slumped on Indian retail demand worries as the the International Monetary Fund (IMF) expects India’s gross domestic product (GDP) to decline by 10.3% in FY21. It revised India’s GDP growth, since its June forecast of a 4.5% drop, reflecting a severe-than-anticipated contraction in economic activities in Q1 FY21, amid the nationwide lockdown due to the COVID-19 pandemic. IMF noted that in the group of emerging economies revisions to the forecast are particularly large for India, where GDP contracted much more severely than expected in the second quarter. COMEX Gold also eyed a tepid reading on US inflationary front and failed to sustain after hitting a three week high of $1239 per ounce on Monday. Prices tanked 1.80% to slide under $1900 per ounce. MCX Gold futures plummeted 1.67% to end at Rs 50255 per 10 grams as a break under Rs 51K extended. Meanwhile, the US Labor Department said its consumer price index rose by 0.2% in September after climbing by 0.4% in August. Excluding food and energy prices, core consumer prices still edged up by 0.2% in September following the 0.4% growth seen in August.
Base Metals Preview:
COMEX Copper stayed weak on falling US equities but losses were limited. The International Monetary Fund (IMF), in its latest World Economic Outlook forecast a 4.4% contraction for the world economy this year, which is less severe than the 5.2% drop seen in June. However, IMF noted that the recovery for the global economy will likely be long, uneven, and uncertain. The global economy is expected to record 5.2% growth next year, compared to the 5.4% expansion seen earlier. The red metal saw some buying on supportive Chinese data too. The commodity currently trades at $3.05 per pound, up 0.37% on the day. MCX Copper futures also shed 0.74% to close at Rs 524 per kg.
Crude Oil producing nations cartel OPEC has again cut world oil demand in 2021, according to the cartel’s latest Monthly Oil Market Report. OPEC cited lower economic growth in Organisation for Economic Co-operation and Development (OECD) member countries and non-OECD countries as the primary basis for lowering total world oil demand by 0.08 million bpd in 2021, to reach 96.84 million bpd compared to OPEC’s estimate of 90.29 million bpd for world oil demand this year. While the 3Q20 recovery in some economies was impressive, the near-term trend remains fragile, amid a variety of ongoing uncertainties, especially the near-term trajectory of COVID-19, OPEC said.
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