MCX crude oil futures up 2%, gold and silver futures trade in the green

Crude oil futures on the MCX extended their gains on Monday while precious metal and base metal futures saw moderate gains. With the Federal Reserve Chairman Jerome Powell making it clear that interest rates will be cut, the commodities market found strength. However, geopolitical tensions have given birth to fresh concerns.

Precious metals

Gold futures on the MCX saw gains of 0.58% and were trading at ₹72,206 per 10 grams. The indication of upcoming rate cuts helped the yellow metal climb as it became a more attractive investment bet in a lower interest rate regime.

At the same time, silver futures on the MCX trended upwards and were trading higher by 0.97% at ₹86,041 per kg.

Base metals

Base metal futures outperformed other commodities with copper and zinc futures leading the pack. Copper futures on the MCX were higher by %1.88 at ₹814.15 while zinc futures were up 1.57% at ₹271.45. However, lead futures put up a lackluster performance and were trading lower by %0.26 at ₹189.

Crude oil and natural gas

Crude oil futures on Monday jumped and were trading higher by 2.03% at ₹6,420. Crude oil has found renewed strength as ceasefire talks in the Middle East didn’t result in a positive outcome. Moreover, lower interest rates would result in an increase in consumption consequently resulting in higher crude oil prices.

Natural gas futures tanked on Monday and were trading lower by 2.37% at ₹164.9. The commodity has been under pressure mainly due to growing concerns regarding supply from Russia.

Economic data

On Friday, United States Federal Chairman Jerome Powell said that it is time to cut interest rates as the US economy inches closer to its inflation target. Interest rate cuts have a positive impact on commodities as lower interest rates are conducive to increased consumption and production.

In the upcoming week, traders and investors will be tracking key economic data including GDP and inflation figures from Germany and labor market data from the US.