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  1. MCX crude oil and base metal face pressure as Chinese demand remains weak

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MCX crude oil and base metal face pressure as Chinese demand remains weak

Upstox

2 min read | Updated on October 14, 2024, 17:39 IST

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SUMMARY

MCX crude oil tanked over 2% on Monday while base metal futures saw significant selling pressure as well. Precious metal and natural gas futures were trading in the red on Monday. Weak economic data from China along with the ongoing Middle East conflict has weighed down on investor sentiments.

MCX crude oil and base metal face pressure as Chinese demand remains weak.

MCX crude oil and base metal face pressure as Chinese demand remains weak.

MCX commodity futures were trading with considerable losses on Monday. Crude oil and base metal futures were hit the hardest as weak demand from China hampered investor sentiment. Meanwhile, precious metals and natural gas futures were in the red as well.

Precious metals

Gold futures on the MCX were trading lower by 0.04% at ₹76,278 per 10 grams. The yellow metal’s prices have found support due to uncertainties caused by the ongoing conflict in the Middle East.

Meanwhile, silver futures on the MCX were down by 0.53% and were trading at ₹91,209 per kg. The metal had hit an intraday high of ₹91,664 and was off its day’s low of ₹90,716.

Base metals

Base metal futures on Monday were trading considerably lower on Monday as the market factored in the need for a larger stimulus package to revive weak Chinese demand.

Copper futures on the MCX trading lower by 1.14% at ₹830.50. Meanwhile, zinc futures were trading lower by 1.94% at ₹282.60. Lead futures were down by 1.12% at ₹181.80.

Crude oil and natural gas

MCX crude oil futures on Monday were trading lower by 2.39% at ₹6,212 per barrel. Crude oil prices were under pressure as data from China showed signs of weakness in the economy. Lower demand from China has remained a consistent negative factor for the commodity.

Natural gas futures were trading lower by 1.84% during the session. The commodity was trading at ₹218.2.

Economic data

Data from China signaled that the country’s economy saw an increase in deflationary pressure. Despite China announcing measures to revive its sluggish economy, market participants are factoring in the need for more stimulus measures.

Meanwhile, geopolitical tensions in the Middle East have remained persistent and have seen an escalation with the US sending troops to Israel. While the US economy is making efforts to tackle inflation and a weak labour market, traders and investors also have the upcoming election on their radar.

SIP
Consistency beats timing.
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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.