It was a mixed day for commodities with metals like gold and silver registering a rise in prices, whereas, prices of crude oil and Silver and base metals registered a decline. World Commodities markets continue to be impacted by the spread of Coronavirus and investors are trying to gauge its medium to short term impact on the world economy.
Gold: On Monday, Spot Gold prices rose marginally higher by 0.27 percent to close at $1621.9 per ounce as rising worries over the economic impact of the Coronavirus pandemic shifted the investors to take shelter under the safe-haven asset. Prices of the yellow metal were also supported as hopes over robust stimulus infusion by the U.S. Federal Reserves and other major central banks boosted the appeal for the bullion metal. After witnessing weeks of downfall in prices, Gold prices have begun to go up as uncertainties surrounding the global growth prospects forced the investors towards the yellow metal which again came up as a safe haven asset.
Silver: Spot silver prices also ended higher by 0.59 percent on Monday to close at $14.5 per ounce whereas the MCX silver ended lower by 1.04 percent to close at Rs.40894.0 per kg.
Concerns around the economic impact of the coronavirus pandemic might shift the investors to take invest heavily in gold assets.
Crude Oil:
On Monday, WTI crude prices plunged over 6 percent to close at $20.1 per barrel as worries that the global lockdown could last for months dampened the demand prospects for crude oil and pushed the prices lower. The expectation of rigorous stimulus measures by major central bank around the world provided some support for crude prices. Moreover, the ongoing tiff between major oil producers, Russia and Saudi Arabia, over crude markets, share continued to weigh on the prices. Multiple nations have announced a lockdown in an attempt to counter the deadly the virus which has led to the curtailment of the aviation’s and road transport coupled with a halt in industrial activities hampered Crude prices.
Base Metals:
On Monday, base metal prices on the LME ended negative as the protracted lockout witnessed around the globe in an attempt to stop the rapidly spreading Coronavirus led to a halt in industrial activities which in turn weighed on the base metal prices. Even the significant fall witnessed in Oil prices signal towards an evident downfall in the factory activities around the globe. Halt in auto production in Europe and U.S. amid tumbling car sales witnessed by the Chinese economy signaled that the impact of the Coronavirus pandemic might be much severe and hamper the demand prospects for industrial metals. However, hopes that stimulus measures by major central banks to counter the pandemic might ease down the global economic growth worries and support base metal prices.
