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  1. MCX natural gas futures soar, precious metals and crude oil trades lower

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MCX natural gas futures soar, precious metals and crude oil trades lower

Upstox

2 min read | Updated on August 28, 2024, 17:53 IST

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SUMMARY

MCX natural gas futures on Wednesday soared over 10% as supply concerns were sparked by recent developments in the Russia-Ukraine conflict. Meanwhile, gold futures were down by % and crude oil futures saw losses of %. Base metals were under pressure during the session as well.

MCX natural gas futures soar, precious metals and crude oil trades lower

MCX natural gas futures soar, precious metals and crude oil trades lower

Natural gas futures on the MCX jumped over 10% on Wednesday while the broader commodity market was trading in the red. Although crude oil futures have been under pressure, developments in Libya and the Middle East have supported the commodity.

Precious metals

Gold futures on the MCX saw losses of 0.45% and were trading at ₹71,795 per 10 grams. Although an impending rate cut has provided support to the yellow metal, traders and investors have taken some money off the table ahead of key inflation data from the US.

At the same time, silver futures on the MCX trended down and were trading lower by 1,30% at ₹84,545 per kg.

Base metals

Base metal futures performed similarly to other commodities with copper and zinc futures falling over a percent each. Copper futures on the MCX were lower by 1.12% at ₹810.10 while zinc futures were down 1.49% at ₹257.30. Lead futures saw some selling pressure as well and were trading lower by 0.74% at ₹187.50.

Crude oil and natural gas

Crude oil futures on Wednesday slipped and were trading lower by 1.83% at ₹6,237. Despite geopolitical tensions in the Middle East and tightening supply from Libya, the commodity has faced resistance mainly due to weak demand from China. Moreover, fears of a broader slowdown have impacted crude prices.

Meanwhile, natural gas futures on the MCX soared by over 10% and were trading at ₹175.3. Escalations in the Russia-Ukraine conflict have sparked concerns regarding the natural gas supply. The commodity is trading at its highest level in over a week.

Economic data

Crude oil futures were trading lower ahead of crude oil inventory data from the US. The commodity’s inventory fell by 3.4 million barrels in the previous week.

Meanwhile, market participants have narrowed their focus on the upcoming US personal consumption expenditure (PCE) data which is an important indicator to track inflation and gauge the Fed’s stance regarding interest rates.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.