Precious Metals Preview:
COMEX Gold futures were caught in a downward spiral yesterday as rising US dollar exerted continued selling pressure in the metal. The commodity fell to a one week low of $1850 per ounce in US session before witnessing a pullback on soaring Covid-19 cases globally and hopes of steady Indian retail demand. Overall scenario remains supportive for Gold though the latest developments on Covid-19 vaccines can curb large upmoves. The International Monetary Fund said in a new report that while global economic activity has picked up since June, there are signs that the recovery may be losing momentum, and the crisis is likely to leave deep, unequal scars. The virus has killed more than a million people and left tens of millions unemployed, especially among low-skilled workers, women, and youth. With infection rates still high in many parts of the world, social distancing continues to hold back momentum in the service sector. Gold trimmed losses on these comments and currently trades at $1863 per ounce, up 0.09% on the day. MCX Gold futures closed at Rs 49990 per 10 grams, down 0.67% on the day after testing a low of Rs 49720 per 10 grams.
WTI Crude stayed lower amid choppy moves. Soaring US Covid-19 cases weighed on the US equity markets. Commodities stayed under stress broadly. WTI Crude currently trades at $41.84 per barrel, down 0.14% on the day. MCX Crude ended at Rs 3076 per barrel, down 1.54% on the day as a slide under Rs 3100 per barrel mark accentuated.
Base Metals Preview:
COMEX Copper saw steady buying in dips. Supportive US data helped the metal. A reading on leading US economic indicators increased in line with economist estimates in the month of October, according to a report released by the Conference Board on Thursday. The Conference Board said its leading economic index climbed by 0.7 percent in October, matching the increase seen in the previous month. COMEX Copper currently trades at $3.21 per pound, up 0.20% on the day. MCX Copper closed at Rs 545 per kg, up 0.49% on the day.
Meanwhile, the IMF noted that global GDP is now projected to contract 4.4% in 2020 and stage an uneven and partial recovery next year. In a separate blog post, IMF Managing Director Kristalina Georgieva hailed what she called significant progress in the development of vaccines to vanquish a virus that has claimed more than a million lives around the globe and resulted in tens of millions of job losses.
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