Commodity Market Updates, Jan 7: Silver retreats from record high amid Fed cues; Crude oil falls

Gold futures

Gold futures for February delivery slipped ₹783 or 0.56% to ₹1,38,300 per 10 grams on the Multi-Commodity Exchange (MCX) on Wednesday, January 7, reflecting mild profit booking after strong gains in recent sessions ahead of the release of key US economic data.

In the international market, Comex yellow metal contracts slipped by $21, or 0.47%, to $4,475.10 per ounce.

The safe-haven metal had rallied in the past two trading sessions after the US attacked Venezuela and captured its President Nicolás Maduro, with Donald Trump vowing to "run the country" until there is a "proper" transition of power.

Silver futures

On the MCX, silver futures for the March expiry retreated sharply after hitting a record high of ₹2,59,692 per kilogram on Wednesday, as traders booked profits after a steep rally amid caution ahead of key US data.

The metal had skyrocketed by ₹13,167, or 5.35%, on Tuesday, to a new peak of ₹2,59,322 per kilogram before settling at ₹2,58,811 per kg.

Globally, Comex silver futures were trading lower by $1.41, or 1.74%, to $79.63 per ounce, after rising as much as 1.91% to hover near a record at $82.58 per ounce.

Investors are awaiting the release of key US economic data, including ISM Manufacturing, December ADP employment numbers, and the unemployment rate, along with comments from a slew of Federal Reserve officials that could provide cues on the central bank's monetary policy outlook.

Crude oil futures

Crude oil futures for delivery on January 16 declined by ₹125 or 2.40% to trade at ₹5,085 per barrel on the MCX, after the US President Donald Trump announced that interim authorities in Venezuela will transfer between 30 million and 50 million barrels of oil to the United States following the US military capture of Venezuelan President Nicolás Maduro.

In the overseas market, West Texas Intermediate crude oil (Feb delivery) was trading 0.70% lower at $56.43 per barrel, while Brent Crude (March expiry) fell 0.49% to $60.21 per barrel.

Trump posted on his Truth Social platform that the “high quality, sanctioned” oil would be sold at market price and that the proceeds would be controlled by him as president to “ensure it is used to benefit the people of Venezuela and the United States.”

“I have asked Energy Secretary Chris Wright to execute this plan, immediately,” he wrote. “It will be taken by storage ships, and brought directly to unloading docks in the United States. Thank you for your attention to this matter!”