MCX Gold futures edge lower in morning trade, China expected to resume buying

MCX Gold futures maturing in August opened in the red on Tuesday, trading 0.34% lower at ₹71,194 per 10 grams at 9:02 a.m. Investors and traders are watching out for the Fed policy outcome as well as the US consumer price inflation data set to be released on Wednesday.

Last week, stronger-than-expected US jobs data had dampened expectations of any potential early rate cuts which could have supported gold prices. A reduction in interest rates brings down the opportunity cost of holding gold.

Meanwhile, media reports cited industry players from a conference saying China, the biggest buyer of gold, is expected to resume buying the yellow metal once prices come down from their record highs seen in May. Earlier, reports indicated China had paused its gold purchases in May following 18 consecutive months of buying.

Metals

Meanwhile, MCX Silver futures continued its downward trend with contracts maturing in July declining to as low as ₹88,589 per kg before recovering to ₹88,740 per kg mark by 9:07 a.m. The commodity had hit a high of 96,493 in late May.

MCX Zinc futures maturing in June were trading 0.45% lower on Monday morning at ₹255 per kg.

Crude Oil

Meanwhile, MCX Crude Oil June Futures edged higher on Tuesday over expectations of higher fuel demand this summer. MCX Crude Oil June futures were trading 0.02% higher ₹6,487 at 9:10 a.m. Last week, the contract had hit a low of ₹6,075. Meanwhile, MCX Natural Gas futures maturing in June were trading 3.71% higher at ₹251.50 after projections that late June will be the hottest on record.

Economic Data

Investors and traders are now keenly awaiting the Federal Reserve policy meeting and the consumer price inflation data in the US set to be released on Wednesday.

June 12: Fed policy meet, US Inflation data, China inflation data

June 13: Producer Price Index (PPI) (United States)