MCX energy commodities, most base metals slip; gold outperforms

Energy commodities

Natural gas fell sharply tracking weakness in international markets, as production reports coming out of China showed production rising 6% in the first half of 2024. Gas prices were also trading technically weak, trading at $2.274, breaking the 50-day moving average of $2.282.

Oil prices, too, were trading weak, with the near-month future contract falling 0.4% to ₹6,862 per barrel, as the resurgent dollar put pressure on the commodity.

Base metals

Copper traded 0.5% off as investors weighed between rising supply as well as forecasts that demand for the crucial commodity is expected to rise. Alumium, too, fell 0.5% while zinc prices were up 0.4%.

Precious metals

After trading in the red for most part of the day, gold was up a marginal 0.2% to trade at ₹73,405 per 10 grams, while silver fell 0.2% to ₹92,902 amid hopes that the Federal Reserve would cut interest rates soon amid signs of weakening inflation.

Gold prices have fallen from a peak of ₹74,700 on May 20 amid expectations that a rising US dollar and a stronger US economy may soften demand for precious metals.

Silver futures expiring in September was the most traded contract on the MCX, trading with volumes of ₹1,513 crore; gold was a close second at ₹1,454 crore.

Agri commodities

In agri commodities, cotton candy and mentha oil fell 0.5% and 0.2% on MCX, respectively, amid broad weakness in the sector.

On NCDEX, only two of out the nine agri commodities traded in the green amid hopes that inflation is weakening and as a surplus monsoon in July led to hopes of higher production this year.