COMEX Gold moved moderately lower, impacted by the liquidation in the complete commodity complex. COMEX Silver suffered 3% losses, more influenced by the sell-off in the industrials complex. Meanwhile, S&P has downgraded US sovereign credit rating from AAA to AA+, which has jolted the financial markets. Downgrade was declared after the US market’s close on Friday. As international markets have not been able to react to this event, gold prices are expected to open up with a wide gap.
LME base metals registered heavy losses, with liquidation witnessed across the board. Poor economic sentiment continued to haunt the metal bulls. On supply front, concerns eased where there is a strong possibility of an end to a two-week strike at the world's top Escondida copper mine in Chile, where workers have accepted a bonus offer. LME base metals are expected to open lower, while MCX base metals are expected to struggle further, impacted by the US credit rating downgrade.
MCX Crude oil futures continued to trade weak, impacted by the broad based liquidation in the commodity complex. On international front, US energy futures are expected to trade lower on account of US credit downgrade and looming demand concerns for oil products.