MCX Gold futures trade flat while silver slips 2%; Crude oil trades lower

MCX Gold and silver futures were trading in the red on Monday as markets globally faced selling pressure. Base metals and crude oil saw considerable losses as well. Commodities faced selling pressure as growing recession fears and heightened geopolitical tensions have led to more uncertainties.

Precious metals

MCX gold futures were trading lower by 0.23% at ₹69,628 per 10 grams. Gold managed to hold its ground on Monday while other commodities were trading deeper in the red.

However, Silver futures on the MCX fell over 2.92% during trade and were trading at ₹80,088 per kg. The metal was trading at its lowest level since late April.

Base metals

Base metals saw broad-based selling on Monday as economic uncertainty rose. The possibility of a recession could result in lower manufacturing which would lead to low demand for the base metals.

MCX copper futures were at a 4-month low of ₹774.55 per kg, down by 2.58%. Copper futures have been trending downwards since late May.

Meanwhile, zinc futures were down by 2.21% at ₹245.80 while lead futures saw losses of 0.83% and were trading at ₹184.30.

Crude oil and Natural gas

Despite growing tensions in the Middle East, crude oil futures were trading lower by 0.96% at ₹6,087 per barrel. The weakness in crude oil prices can be credited to weak demand from China and the possibility of an upcoming recession which results in a slowdown of production and manufacturing activities.

Natural gas futures were down by 1.76% on Monday and were trading at ₹162.

Economic data

Global stock markets crashed on Monday with the Nikkei 225 falling nearly 12%. The Bank of Japan hiked interest rates for the second time this year in order to provide support to the weak Japanese yen. The appreciation of the yen led to carry trades being impacted which led to a domino effect across markets. In addition, geopolitical tensions and economic slowdowns have been crucial factors adding to the crash on Monday.

In the upcoming week, investors and traders will be closely tracking key data from the U.S. Services Purchasing Managers Index (PMI) and jobless claims data. Any data hinting towards further weakening of the economies could negatively impact the markets.