MCX precious metal futures trade higher; gold up 0.67% while silver climbs 1.31%

MCX gold and silver futures were trading in the green on Tuesday while crude oil futures were under pressure before staging a recovery. With geopolitical tensions fears easing out, investors and traders will now be bracing for Jerome Powell’s speech at the Jackson Hole Symposium.

Precious metals

Gold futures on the MCX were trading higher by 0.67% at ₹72,066 per 10 grams. With rate cuts on the way, the demand for yellow metal has seen a steady increase.

Silver futures saw an impressive rally to trade higher by 1.31% at ₹85,443 per kg. The metal hit an intraday high of ₹85,500.

Base metals

Base metals were trading mixed on Tuesday’s session with copper future trading higher by 0.04% at ₹806.75 while lead futures on the MCX were marginally higher by 0.11% at ₹187.90. However, Zinc futures showed strength and were trading higher by 1.21% at ₹267.20.

As recession fears fade, an uptick in manufacturing activity will lead to higher demand for base metals.

Crude oil and natural gas

Weak demand from China and easing of geopolitical tensions resulted in crude oil futures trading lower earlier in the session before climbing to trade higher by 0.16% at ₹6,199 per barrel. However, crude oil prices may benefit from any upcoming rate cut which would result in an increase in demand for the commodity.

Natural gas futures on the MCX were trading flat at ₹186.50.

Economic data

Data from China showed a further slowdown in the world’s second-largest economy with a decline in industrial output, export, and investment growth. China kept its key lending rates unchanged at 3.35%.

Going ahead, traders and investors will be keeping their eyes on several key events including Bank of Japan Governor Kazuo Ueda’s appearance in parliament and the US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Symposium.

Consumer Price Index (CPI) data from the Euro Zone, US initial jobless claim data, and manufacturing activity data will be other key factors that market participants will be paying close attention to.