MCX crude oil future gain for second consecutive session; gold futures up 0.15%

MCX crude oil futures extended their gains for the second consecutive session on Wednesday while gold futures were trading flat. Although global markets have seen some recovery in the past two sessions, base metals have remained weak.

Precious metals

MCX gold futures saw gains of 0.15% and were trading at ₹69,065 per 10gms on Wednesday and were trading in a range. A rise in U.S. 10-year Treasury bond yields has prevented precious metals from rising further.

Silver futures were trading lower by 0.08% at ₹79,563 per kg. The metal saw losses for the fifth consecutive session but has managed to trade above the ₹78,000 level.

Base metals

Base metals remained under pressure during Wednesday’s session with copper futures on the MCX trading lower by 0.90% at ₹775.45. Zinc futures saw selling pressure as well and were down 0.63% at ₹245.90. Lead futures were trading flat and were trading marginally lower by 0.03% at ₹182.95.

Crude oil and Natural gas

MCX crude oil futures extended gains for the second consecutive session ahead of the U.S. crude oil inventory data. Fears of a U.S. recession have prevented oil prices from rallying further while a war in the Middle East could prove to be a trigger for further rise in prices. Crude oil futures were trading higher by 1.21% at ₹6,261

Natural gas futures on the MCX were trading higher by 2% at ₹173.80.

Economic data

Adding to growing concern about China’s manufacturing sector, the country saw its slowest growth in exports in three months. However, the country’s imports grew by 7.2% in July compared to a decline of 2.3% in June.

Meanwhile, growing Middle Eastern tensions pushed crude oil prices higher however, recession fears and weak demand from China have acted as hurdles for a further rally.

Traders and investors are expecting the U.S. Fed to cut interest rates in the month of September. A change in the pace or magnitude of the rate cuts will provide more strength to gold prices.

In the second half of the week, key economic data such as Consumer Price Index (CPI) data from China and Germany along with employment data from the U.S. will provide more clarity about the global economic scenario.