The rupee pared initial losses to gain and settle higher against the US Dollar supported by weak American currency and negative equity performance. It ended at 75.51 provisionally gaining 12 paise since the last close. At the interbank exchange, it traded between a high of 75.49 and low of 75.60 openings strong in Monday’s session.
Weak domestic equity market and rising COVID-19 cases weighed on investor sentiments, but weak US Dollar index saved Rupee from registering losses. Meanwhile, the Health Ministry of India recorded Coronavirus cases to be 548318 and death tolls totalling to 16475.
Crude Oil Rises with Hopes
Crude prices climbed higher on Monday, marking a decisive run of global markets. Brent crude oil gains 0.7% to USD 41.32 per barrel and US WTI crude rises 1.1% to USD 38.93 per barrel nearing the USD 40 level. The benefits were cut short by rising Coronavirus cases around the globe.
European data showed recovery with investors’ sentiments rising from 67.5 to 75.7 points in June with rising hopes. Also, Chinese industrial firms recorded a profit in books indicating economic recovery. However, fears of COVID-19 cases hinder the gains. US states are reimposing restrictions after noticing an inevitable rise in cases. OPEC+ is supporting from their end to keep the prices up with continuous production cuts. For July, they agreed to extend the cuts to nearly 9.7 million BPD.
Gold Price Trades Flat
Gold prices settled flat with a slight rise holding near the 8-year peak touched last week. Spot gold gains 0.1% to USD 1772.39 an ounce with only USD 6.67 distancing from the height. Meanwhile, the US Gold Future rises 0.3% to close at USD 1785.70 nearing USD 1800 level. Gold prices are on the track of gaining for straight 3rd month marking the highest rise for more than four years.
A steady rise in gold price is noticed with rising fears over Coronavirus cases accelerating. Assumptions over lockdown restrictions are derailing the hope of economic recovery. Last week, the gold rise was capped with a positive performance of the US Dollar index and gains at the Wall Street. SPDR Gold Trust holdings soar 0.3% to 1178.90 tonnes as of Friday.
Domestic gold prices rise 0.24% to close at INR 48305 per 10 grams with concerns over a spike in COVID-19 cases and investors shifting to safe-haven.