Mumbai - The main concern of world governments remained on how to remove lockdown measures and also ramp up healthcare facilities to protect their citizens. Hopes of a speedy economic recovery persisted but fears about a second resurgent wave continued to play in the mind of global leaders, told, Mr. Prathamesh Mallya, AVP Research Non Agri Commodities and Currencies, Angel Broking Ltd
Gold
Mr. Mallya told said that on Thursday, Spot Gold prices ended lower by 0.52 per cent to close at $1736.2 per ounce as the value of the U.S Dollar increased exponentially, making the cost of the yellow metal more expensive for other currency holders.
However, worries over a more dangerous second wave of the pandemic, which is expected in the winter months, limited any further downfall in gold prices.
The U.S Federal Reserve announced some pragmatic plans to cushion the world economy from the enormous impact of the coronavirus. This step was taken in lieu of the fact that the economic recovery period post the coronavirus will take a much more extended period than predicted.
Silver
On Thursday, Spot silver prices plunged about 3 per cent to close at $17.7 per ounce. Prices on the MCX ended higher by 1.15 per cent closing at Rs.48639 per kg.
Crude Oil
On Thursday, WTI Crude prices decreased over 8.2 per cent closing at $36.3 per barrel due to worries over plunging demands as well as a simultaneous increase in U.S Crude Inventory levels.
U.S Crude stockpiles increased over 5.7 million barrels in the past week since the U.S increased the import of inventories from Saudi Arabia.
After decreasing cases were reported from around the world, some places in China and elsewhere reported a fresh surge in coronavirus cases. This accentuated the falling demand and prices.
Base Metals
On Thursday, base metal prices on the London Metal Exchange (LME) ended negative as there was a string of feeble economic data published by the U.S Federal Reserve. This weighed on the market sentiments and pushed down the prices.
The biggest economy of the world is grappling with surging cases which crossed over 2 million. Violent riots also spread over the major economic areas, which further added to the decreasing prices and trade.
However, hopes of vast and extraordinary infusion and stimulus measures to be unfurled by the U.S in addition to increased expenditure on infrastructure and positive trade data generated by China limited any further downfall in the prices.
Copper
On Thursday, LME Copper prices ended lower by 2.4 per cent closing at $5764.5 per tonne as the pandemic related lockdowns and stopping of mining activities, and production units weighed on the prices of the red metal.
It is to be seen how world governments can tackle the critical problems of unemployment, hunger and starvation due to the recession-like conditions in many parts of the world. It is hoped that with the removal of lockdowns, the world will slowly return to a state of normalcy.
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