MCX Gold futures see slight gains while silver trades flat

After a volatile week for commodities, precious metals found some stability, with gold trading higher while silver recovered from the day’s lows. However, markets remained cautious ahead of key US inflation data.

Precious Metals

Gold futures on the MCX opened higher on Friday but witnessed choppy action, trading higher by 0.4% at ₹67,700 per 10 grams. The yellow metal had seen a sharp fall in prices after the Union Budget announced a reduction in customs duties. Silver futures on the MCX found some stability and remained range-bound after a significant fall the day prior. Silver futures were trading flat with losses of 0.1% at ₹81,246 per kg.

Base Metals

Copper futures saw modest gains of 0.7%, trading at ₹801. The metal had hit its lowest level in over three months in the previous session due to demand concerns in China but has staged a recovery since then. MCX zinc futures trended downwards, losing nearly 0.4% to trade at ₹251.60.

At the same time, MCX zinc futures trended downwards and lost nearly 0.4% to trade at ₹251.60.

Oil and Gas

Crude oil futures expiring on August 19 saw losses of 0.4%, trading at ₹6,546 per barrel, while natural gas futures were down by 0.6% at ₹174.50. Crude oil futures are set to decline for the third consecutive week as the chances of a ceasefire in Gaza increase, combined with weak demand from China.

Economic Data

Investors will be tracking the United States Personal Core Expenditure (PCE) Price Index data as it is released on Friday. The PCE Price Index data will be key to tracking inflation and gaining insights into the Fed’s interest rate stance. After the strong GDP numbers, if the PCE data is closer to the Fed’s target of 2%, it would further boost hopes of a rate cut in September and December.

Next week, the Bank of England may announce its first rate cut since 2020, which would play a significant role in the market’s performance in the coming days. However, with a recent hike in services prices and the inflation target set to rise again, there has been a rise in uncertainty.