MCX gold and silver futures trade higher; Base metals face pressure

Gold and silver futures on the MCX saw modest gains on Monday as the markets take a breather before the upcoming FOMC meeting which will reveal the Fed’s interest rate policy. Meanwhile, base metals were trading in the red. Crude oil and natural gas failed to retain gains during the session as well.

Precious metals

Gold futures on the MCX saw gains of over 0.19% on Tuesday and were trading at ₹68,400 per 10 gms. After climbing higher earlier in the session, the yellow metal saw range-bound action. Gold futures hit a high of ₹68,600 during the session. Geopolitical tensions and the higher likelihood of the Fed cutting interest rates have provided support to the yellow metal.

Silver futures on Tuesday were trading in the range and saw gains of 0.31% to trade at ₹81,540 per kg. The metal managed to trade above the ₹81,200 mark and hit a low of ₹81,290.

Base metals

Base metals were under pressure on Tuesday with copper, zinc, and lead trading in the red.

Copper futures extended losses for another session and were trading close to their lowest level in over 4 months. The futures were trading lower by 0.6% at ₹786.35 per kg.

Zinc futures on the MCX opened lower but staged a recovery from the day’s low of ₹247.75. The futures were trading lower by 0.16% at ₹249.40 per kg. Meanwhile, lead futures sank by 0.72% to trade at ₹185.65 per kg.

Crude oil and Natural gas

Crude oil saw selling pressure during Tuesday’s session due to weak demand from China and was trading lower by 0.37% at ₹6,327 per barrel. A slowdown in demand has impacted the price of crude oil which resulted in the commodity trading at the lowest levels seen since June.

Natural gas declined by 0.46% to ₹172.10.

Economic data

Commodities fall with global markets bracing for key data which includes the interest rate decision by the Bank of Japan and the U.S Federal Reserve. Traders and investors are expecting the Fed to have a dovish stance with a rate cut in September; however, any deviation from these expectations could have a significant impact on the market.