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  1. MCX natural gas futures surge nearly 5% as Russian supply concerns rise

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MCX natural gas futures surge nearly 5% as Russian supply concerns rise

Upstox

2 min read | Updated on August 12, 2024, 19:58 IST

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SUMMARY

Natural gas futures on the MCX rallied nearly 5% as recent developments in the Russia-Ukraine conflict has raised concerns of possible supply constraints. MCX gold futures were trading higher by 0.42% while silver futures rose 1.32%. Crude oil futures were trading higher by 1.18%.

MCX natural gas futures surge nearly 5% as Russian supply concerns rise

MCX natural gas futures surge nearly 5% as Russian supply concerns rise

The Multi Commodity Exchange (MCX) saw natural gas futures rally due to increased concerns about supply from Russia. At the same time, crude oil and silver futures posted impressive gains as well. Although gold saw moderate gains, base metals trended upwards during the session.

Precious metals

MCX gold futures saw gains of 0.42% and were trading at ₹70,187 per 10 grams on Monday. Gold prices stayed firm during the session as traders await key inflation data from the U.S. Additionally, growing geopolitical tensions have made the yellow metal more attractive.

Silver futures breached the ₹81,000 mark were trading higher by 1.32% at ₹81,606 per kg.

Base metals

Base metals extended their gains on Monday with zinc futures being the top gainer and trading higher by 1.20% at ₹260.80. Lead and copper futures on the MCX saw trended upwards with copper futures trading higher by 1.12% at ₹785.30 while lead futures were up 0.51% at ₹187.80

Higher demand for the base metals has provided support to the price which had seen a steady decline recently.

Crude oil and Natural gas

MCX crude oil futures were trading higher by 1.18% at ₹6,434. Although lackluster demand from China has prevented crude oil prices from rising further, geopolitical uncertainty and supply chain constraints have kept crude oil prices buoyant.

Natural gas futures on the MCX surged nearly 5% and were trading at ₹189.10. The rally came on the back of possible supply constraints due to recent developments in the Russia-Ukraine conflict. Although several countries have found alternative suppliers, some countries still rely on Russian gas supply.

Economic data

Traders and investors will be closely tracking economic data throughout the week as India, the UK, and U.S. announce consumer price index (CPI) data. The CPI data will be key to track inflation and the future monetary direction of central banks. A more dovish stance from central banks could provide further strength to bullion and crude oil.

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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.

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