MCX Gold futures rally on global uncertainty ; Silver futures up 1.63%

Futures contracts of precious metals on the Multi Commodity Exchange (MCX) saw strength on Friday’s sessions as gold and silver traded higher. However, crude oil was unable to extend gains and was set to decline for the fourth consecutive week.

Precious metals

MCX Gold futures on Friday were trading higher by 0.92% at ₹70,600 per 10 grams. After a steep fall in prices on 23 July 2024, the yellow metal has staged an impressive recovery back as demand for the metal increased.

Silver futures on the MCX saw a significant rally as the metal was trading higher by 1.71% at ₹84,010 per kg. The metal was able to recoup some gains after facing considerable selling pressure in the previous session.

Base metals

MCX Zinc futures expiring on 30 August 2024 were trading higher by over 1.04% on Friday at ₹253 per kg. The futures had hit a low of ₹250.40 for trending upwards during the session.

Meanwhile, copper futures on the MCX saw gains of over 0.92% and was trading at ₹797.60 per kg. However, lead futures were under pressure and were trading lower by 0.24% at ₹186.15.

Crude oil and Natural gas

Crude oil futures on the MCX continued losing for the second consecutive session and were down 0.31% at ₹6,416 per barrel. Despite rising geopolitical tensions and interest rate cuts, crude oil has been unable to rally further mainly due to weak demand from China. Crude oil has recorded losses for four consecutive weeks.

Natural gas futures saw selling pressure during the session and were trading lower by 0.53% at ₹167.90. Natural gas futures on the MCX hit a low of ₹164.8 before trending upwards.

Economic Data

On Thursday, the U.S. factory data reported a contraction in factory activity for the first time in 8 months. With a slowdown in production and consumption across the U.S., Europe, and China, investors and traders had rising worries about an upcoming recession.

The upcoming South Korean inflation data and U.S. non-farm payroll data will give further clarity on the strength of economies worldwide.