Commodity Market Updates, September 16: Crude oil declines; Silver, Gold futures soar to record highs

Here is how different commodity futures were trading on September 16.

Gold futures

Gold prices climbed to a record high of ₹1,10,530 per 10 grams in the domestic futures market on Tuesday, September 16, shadowing strong global cues as investors positioned ahead of an expected US Federal Reserve rate cut this week.

On the Multi-Commodity Exchange (MCX), the most traded gold futures for October delivery surged to ₹1,10,530 per 10 grams.

Similarly, the December contract advanced to its record high of ₹1,11,578 per 10 grams on the MCX, after scaling a fresh peak of ₹1,11,350 per 10 grams on Monday.

According to the commodity market experts, the gold prices maintained their upward momentum as traders bet on a rate cut by the Fed in its policy decision on September 17, while also looking for signals on further monetary easing through the rest of the year.

In the international market, gold futures for December delivery surged to an all-time high of $3,728.32 per ounce, underpinned by expectations of looser US monetary policy and sustained demand for safe-haven assets amid global economic uncertainty.

Silver futures

On the MCX, silver futures for December delivery rallied to hit a lifetime high of ₹1,29,878 per kilogram in the domestic futures market, buoyed by expectations of a US Federal Reserve rate cut and growing belief that the easing cycle may continue into next year.

In the international market, silver futures for December delivery were trading 0.32% higher at $43.09 per ounce, marking a fresh 14-year high in global trade.

Aluminium futures

Aluminium prices declined 35 paise to ₹261.80 per kilogram in the futures trade as participants trimmed their positions on a weak trend in the spot market.

On the MCX, aluminium for delivery in October fell 35 paise or 0.13% to ₹261.80 per kg in 1,163 lots.

Analysts said participants cutting down positions due to easing demand from consuming industries mainly kept aluminium prices lower.

Zinc futures

Zinc prices fell 0.31% to ₹285 per kilogram in futures trade as speculators reduced their exposure, tracking negative cues from the spot market.

On the MCX, zinc contracts for October delivery traded lower by 90 paise or 0.31% at ₹285 per kg in 1,512 lots.

Analysts said the trimming of positions by participants owing to slackened demand from consuming industries in the physical market mainly weighed on zinc prices.

Copper futures

Copper futures slipped ₹4.70 to ₹922.05 per kilogram as participants reduced their positions amid muted demand in the domestic market.

On the MCX, copper futures for the October contract eased by ₹4.70 or 0.51% to ₹922.05 per kilogram in a business turnover of 3,385 lots.

Analysts attributed the decline in copper prices to lower bets by participants.

Crude oil futures

Crude oil futures declined by ₹8 to ₹5,579 per barrel as participants trimmed their positions amid weak demand in the spot market.

On the MCX, crude oil for September delivery fell ₹8 or 0.14% to ₹5,579 per barrel in 4,297 lots.

Analysts said the prices were affected after participants offloaded their holdings amid weak demand in the spot market.

Globally, however, West Texas Intermediate crude oil was trading 0.24% higher at $63.45 per barrel, while Brent Crude rose 0.16% to $67.55 per barrel in New York.

Guar gum futures

Guar gum prices rose ₹16 to ₹9,311 per quintal in futures trade as speculators increased their holdings amid a firm spot demand.

On the National Commodity and Derivatives Exchange (NCDEX), guar gum contracts for October delivery traded higher by ₹16 or 0.17% at ₹9,311 per quintal, with an open interest of 50,010 lots.

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

Guar seed futures

Guar seed prices increased by ₹16 to ₹5,114 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 ₹16 or 0.31% to ₹5,114 per quintal with an open interest of 49,840 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.

Coriander futures

Coriander prices on Tuesday eased by ₹2 to ₹8,132 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 by ₹2 or 0.02% to ₹8,132 per quintal in 14,395 lots.

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

Cottonseed oil cake futures

Cottonseed oil cake prices fell ₹7 to ₹2,913 per quintal in futures trade as participants reduced their bets following weak trends in the spot market.

On the NCDEX, cottonseed oil cake for December delivery traded lower by ₹7 or 0.24% at ₹2,913 per quintal, with an open interest of 11,780 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.