Commodity Market Updates, September 10: Crude oil, silver surge; Gold futures decline

Here is how different commodity futures were trading on September 10.

Gold futures

On the Multi-Commodity Exchange (MCX), gold futures for October delivery declined ₹203, or 0.19%, to ₹1,08,830 per 10 grams in a business turnover of 17,442 lots on Wednesday, September 10. The most-traded precious metal contract had surged to an all-time high of ₹1,09,840 per 10 grams on Tuesday.

Similarly, the far-month gold futures for December delivery eased ₹249, or 0.23%, to ₹1,09,839 per 10 grams in 5,069 lots. On Tuesday, the yellow metal had breached the ₹1.10 lakh per 10 grams level for the first time ever before paring gains.

According to commodity market experts, the correction in gold prices came after a recent rally that had lifted the precious metal to historic peaks. The profit-taking came against the backdrop of bearish sentiment in the overseas markets, which weighed on the metal.

Globally, Comex gold futures went down to $3,679.02 per ounce. It had surged to hit a lifetime high of $3,715.20 per ounce on Tuesday.

Silver futures

Silver prices continued their upward trend, jumping ₹671 to ₹1,25,132 per kilogram in the domestic futures market, driven by escalating tensions in the Middle East and a weakening US dollar.

On the MCX, the white metal futures for December delivery appreciated ₹671 or 0.54% to ₹1,25,132 per kg, in a business turnover of 17,714 lots.

In the overseas markets, Comex silver futures were trading 1.02% higher at $41.76 per ounce.

Aluminium futures

Aluminium prices rose 25 paise to ₹257.20 per kilogram in the futures trade as speculators built up fresh positions amid a positive trend in the spot market.

On the MCX, aluminium for delivery in October increased by 25 paise or 0.1% to ₹257.20 per kg in 547 lots.

Analysts said fresh positions created by traders amid demand from consuming industries supported aluminium prices in the futures market.

Zinc futures

Zinc prices surged 65 paise to ₹278.55 per kilogram in futures trade amid a pick-up in spot demand.

On the MCX, zinc contracts for October delivery traded higher by 65 paise or 0.23% to ₹278.55 per kilogram with a business turnover of 769 lots.

Marketmen said the widening of positions by participants, following a pick-up in demand from consuming industries, kept zinc prices higher in the futures trade.

Copper futures

Copper futures advanced 0.1% to ₹908.20 per kilogram on Wednesday due to higher spot demand.

On the MCX, copper contracts for October delivery grew by 95 paise or 0.1% to ₹908.20 per kg, in a business turnover of 1,910 lots.

Analysts attributed the rise in copper prices to higher bets by participants.

Crude Oil futures

Crude oil prices rose ₹49 to ₹5,593 per barrel amid concerns that the conflict in the Middle East region could escalate following an Israeli strike in Qatar targeting Hamas leaders.

The most traded crude oil futures for September delivery on the MCX gained ₹49 or 0.88% to ₹5,593 a barrel in 10,812 lots.

In the international markets, West Texas Intermediate (WTI) crude oil was trading 1.18% higher at $63.37 per barrel, while Brent Crude was up 1.17% to $67.17 per barrel.

Cottonseed oil cake futures

Cottonseed oil cake prices fell ₹25 to ₹2,937 per quintal in futures trade as participants reduced their bets following weak trends in the spot market.

On the National Commodity and Derivatives Exchange (NCDEX), cottonseed oil cake for December delivery traded lower by ₹25 or 0.85% at ₹2,937 per quintal, with an open interest of 7,890 lots.

Analysts said a sell-off by participants at existing levels amid a subdued trend in the market mainly weighed on cottonseed oil cake prices.

Guar gum futures

Guar gum prices increased by ₹51 to ₹9,098 per quintal in futures trade as speculators increased their holdings amid a firm spot demand.

On the NCDEX, guar gum contracts for October delivery traded higher by ₹51 or 0.56% at ₹9,098 per quintal, with an open interest of 44,875 lots.

Analysts said after tracking a firm physical market trend, traders raised their bets, which led to the rise in guar gum prices.

Coriander futures

Coriander prices eased by ₹56 to ₹8,258 per quintal in futures trade as speculators reduced their positions amid weak demand in the spot market.

On the NCDEX, coriander contracts for October delivery declined ₹56 or 0.68% to ₹8,258 per quintal in 14,290 lots.

Market analysts said subdued demand in the spot market led to the decline in coriander prices here.

Guar seed futures

Guar seed prices increased by ₹18 to ₹5,073 per quintal in the futures trade after speculators widened their positions amid a firm trend in the spot market.

On the NCDEX, guar seed contracts for October delivery rose ₹18 or 0.35% to ₹5,073 per quintal with an open interest of 45,990 lots.

According to marketmen, speculators raising bets, a firm trend in the spot market, and thin supplies from growing belts mainly led to the rise in guar seed prices.