Commodity Market Updates, June 29: Crude oil futures surge; gold, silver decline on the MCX

Prices of industrial metals, including copper and aluminium, increased marginally, while zinc saw a decline on Monday, June 29.

Crude oil futures

Crude oil futures for delivery in August advanced by as much as 1.25% or ₹82 to hit an intraday high of ₹6,661 per barrel (bbl) on the Multi-Commodity Exchange (MCX) on Monday, June 29, mirroring the trend in global crude prices, as they surged amid renewed tensions between the United States and Iran despite the existing ceasefire memorandum of understanding (MoU).

At around 2:29 PM, the contract was trading 0.81% or ₹53 higher at ₹6,650 per bbl.

Over the weekend, the United States carried out a series of airstrikes against missile and drone storage sites in Iran as a retaliatory move against the West Asian country after an alleged violation of the ceasefire agreement.

The US Central Command, in an official statement, said that the attacks on Iran were a response to Iran's attack last week on a Panama-flagged tanker that was transiting near the Strait of Hormuz with more than two million barrels of crude oil.

Globally, Brent crude oil futures (with expiry in August) grew as much as 1.94% to reach an intraday high of $73.39 per bbl. At the time of writing, it stood at $72.38 per bbl, marking a 0.54% increase. Last week, crude oil prices fell to their pre-West Asia war level.

Gold futures

Yellow metal futures with expiry in August declined as much as 1.02% or ₹1,472 to touch an intraday low of ₹1,42,690 per 10 grams on the MCX, compared with the previous closing price of ₹1,44,162 per 10 grams.

At the time of writing, it was trading at ₹1,43,500 per 10 grams, reflecting a ₹662 or 0.46% fall, as investors assessed the impact of renewed hostilities between the US and Iran, movement in crude oil prices, and a raft of upcoming macroeconomic data.

During the week, investors will be on the lookout for manufacturing and services PMI from major economies, inflation data from the Eurozone, and the US nonfarm payrolls and unemployment figures for fresh cues on the trajectory of the Federal Reserve's monetary policy.

Globally, COMEX gold (delivery in August) dropped by 0.48% to trade at $4,076.60 per troy ounce at the time of writing. During the trading session, it declined as much as 1.03% to hit the day’s low of $4,053.80 per ounce.

Silver futures

Silver contracts for delivery in September tumbled as much as 1.03% or ₹2,300 to hit the session’s low of ₹2,21,172 per kilogram on Monday, as against the closing price of ₹2,23,472 per kilogram in the previous session.

At the time of writing, the futures contract of the white metal was trading 0.25% or ₹555 lower at ₹2,22,917 per kilogram.

Copper futures

Copper futures with expiry in August jumped as much as 0.25% or ₹3.2 to hit an intraday high of ₹1,286.85 per kilogram on the MCX, up from its previous closing price of ₹1283.65 per kilogram. The copper contracts edged higher by ₹0.70, or 0.05%, to ₹1,284.35 per kilogram at the time of writing.

Aluminium futures

Aluminium prices on Monday rose slightly by ₹1.3 or 0.4%, to ₹334.40 per kilogram in futures trade as speculators built up fresh positions amid a positive trend in the spot market.

On the MCX, the price of aluminium for delivery in August edged up by ₹0.10, or 0.03%, to ₹333.20 per kilogram at the time of writing.

Zinc futures

Zinc futures with expiry in August were trading flat with a negative bias, slumping as much as 0.22% or ₹0.8 to touch an intraday low of ₹356.20 per kilogram on the MCX.

Zinc contracts slipped by ₹0.35, or 0.10%, to ₹356.65 per kilogram, at the time of writing.