Commodity Market Updates, September 18: Crude oil, industrial metals fall; Gold futures slip

Here is how different commodity futures were trading on September 18.

Gold futures

Gold prices declined by ₹612 to ₹1,09,210 per 10 grams in domestic futures trade on Thursday, September 18, as speculators cut positions following a firm recovery in the dollar after the Federal Reserve cut the interest rate by 25 basis points, setting the new benchmark interest rate in the 4-4.25% range.

On the Multi-Commodity Exchange (MCX), gold futures for October delivery depreciated ₹612 or 0.56% to ₹1,09,210 per 10 grams.

The December contract also diminished by ₹566 or 0.51% to ₹1,10,300 per 10 grams.

Globally, gold futures for December delivery dropped $28.05 or 0.75% to $3,689.75 per ounce after hitting a record $3,744 in the previous session.

Fed Chair Jerome Powell described the latest move as "risk management" amid labour market weakness, stressing there is no need to rush easing. However, newly appointed Governor Stephen Miran dissented, seeking a larger 50 basis points cut.

Silver futures

On the MCX, silver futures for December delivery weakened by ₹604 to ₹1,26,380 per kilogram. The white metal contracts for March next year fell ₹630 or 0.49% to ₹1,27,985 per kg.

In the international market, silver futures declined by 1.05% to $41.71 per ounce, retreating from a 14-year high of $43.43 earlier this week.

Aluminium futures

Aluminium prices slipped 45 paise to ₹259.50 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 45 paise or 0.17% to ₹259.50 per kg in 1,679 lots.

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

Copper futures

Copper futures fell ₹2.95 to ₹907.55 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 ₹2.95 or 0.32% to ₹907.55 per kilogram in a business turnover of 4,375 lots.

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

Zinc futures

Zinc prices on Thursday decreased 0.48% to ₹281.25 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 ₹1.35 or 0.48% at ₹281.25 per kg in 1,739 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.

Crude oil futures

Crude oil futures fell by ₹11 to ₹5,611 per barrel, as participants trimmed their positions, tracking weak demand in the spot market.

On the MCX, crude oil for October delivery declined by ₹35, or 0.62%, to ₹5,611 per barrel in 4,866 lots.

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

Globally, West Texas Intermediate crude oil was trading 0.52% lower at $63.72 per barrel, while Brent Crude fell 0.44% to $67.65 per barrel in New York.

Cottonseed oil cake futures

Cottonseed oil cake prices slipped ₹9 to ₹2,914 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 ₹9 or 0.31% at ₹2,914 per quintal, with an open interest of 13,320 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.

Coriander futures

Coriander prices eased by ₹74 to ₹8,334 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 ₹74 or 0.89% to ₹8,334 per quintal in 16,095 lots.

Guar gum futures

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

Guar gum prices fell ₹94 to ₹9,274 per quintal in the futures trade as traders offloaded their holdings in line with a weak trend in the spot market.

On the NCDEX, guar gum for October delivery declined by ₹94 or 1.01% to ₹9,274 per quintal in 51,405 lots.

Marketmen said slackness in demand in the spot market and ample supplies from growing regions put pressure on guar gum prices.

Guar seed futures

Guar seed prices declined by ₹32 to ₹5,110 per quintal in futures trade amid ample supplies.

On the NCDEX, guar seed contracts for October delivery fell ₹32 or 0.63% to ₹5,110 per quintal with an open interest of 50,365 lots.

Marketmen attributed the downward trend in guar seed prices to increasing supplies from growing regions.