MCX natural gas futures skyrocket, base metal pack continues to trade higher

MCX base metal futures remained strong on Thursday and were joined with silver which saw decent gains as well. Gold futures saw slight gains while natural gas futures surged. Market participants have their eyes on the growing conflict between Israel and Lebanon. Additionally, the markets will also be tracking important economic and inflation data.

Precious metals

Gold futures on the MCX were trading higher by 0.30% at ₹75,535 per 10 grams. The yellow metal was trading in a range after it hit fresh highs in the previous session.

Meanwhile, silver futures on the MCX were trading higher by 1.6% and were trading at ₹93,527 per kg. The metal had hit an intraday high of ₹93,575 and was off its day’s low of ₹92,006.

Base metals

Base metals continued their rally on Thursday due to brighter prospects of revival of Chinese demand.

Copper futures on the MCX trading higher by 1.4% at ₹852 and were at their higher level since mid-July.

Meanwhile, zinc futures hit fresh highs and were trading higher by 1.93% at ₹279.35. Lead futures were trading higher by 0.62% at ₹185.55.

Crude oil and natural gas

MCX crude oil futures on Thursday were trading lower by 2% at ₹5,725 per barrel. Although Hurricane Helene resulted in US facilities scaling back operations, the commodity remained weak. Moreover, rising concerns due to geopolitical tensions or China’s stimulus measures have not provided much support to prices.

Natural gas futures on the MCX surged 11.1% on Thursday and were trading at ₹240.9. Natural gas have seen a significant increase in demand due to geopolitical tensions and rising demand for the commodity over alternatives like coal. The prices have jumped ahead of natural gas inventory data which helps gauge the demand for the commodity.

Economic data

One of the key driving factors for commodities this week have been the stimulus measures announced by China. Market participants are also factoring further stimulus to support economic growth in the world’s second largest economy.

Meanwhile, initial jobless claims data from the US, due later today could have an impact on the markets if the data signals a soft labour market. Additionally, the upcoming PCE inflation data is on the radar too as it would provide further clarity to traders and investors.