Precious Metals Preview:
COMEX Gold saw a very tight movement yesterday. However, the metal stays broadly supported on hopes of heavy economic stimulus by leading global economies. The surge in coronavirus cases is a big concern for an economic recovery that still has a long way to go and the will continue to need support from both fiscal and monetary policy, Federal Reserve Chair Jerome Powell said on Tuesday. The European Central Bank or ECB will preserve favourable financing conditions for as long as necessary, Executive Board member Isabel Schnabel noted. The yellow metal currently trades at $1874 per ounce, down 0.54% on the day, witnessing some selling in Asia. MCX Gold futures ended at Rs 50774 per 10 grams, down 0.11% on the day after testing a low of Rs 50700 per 10 grams.
WTI Crude oil futures slipped on corrective selling as traders focussed on soaring global Covid-19 cases. The coronavirus situation in Germany is still very serious even though infection numbers are not rising so fast, Chancellor Angela Merkel said on Tuesday, after federal and state leaders postponed until Nov. 25 a decision on further lockdown measures. Situation in Italy remains precarious too as the nation registered 32,191 new coronavirus infections, the health ministry said on Tuesday, up from 27,354 the day before. WTI Crude is down 0.43% at $41.25 per barrel. MCX Crude oil futures ended at Rs 3058 per barrel, down 0.52% on the day after testing near Rs 3020 per barrel.
Base Metals Preview:
COMEX Copper pulled back from 29 month high but the losses were curbed on intraday recovery in DOW. Supportive US economic data also capped losses and the red metal currently trades at $3.20 per pound, down 0.18% on the day. MCX Copper ended down 0.50% on the day at Rs 544 per kg after a sharp spurt on Monday. Meanwhile, in the US, industrial production jumped by 1.1% in October after falling by a revised 0.4% in September. Homebuilder confidence in the US also hit another new record high in the month of November, the National Association of Home Builders revealed in a report released on Tuesday. The report said the NAHB/Wells Fargo Housing Market Index climbed to 90 in November from 85 in October.
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