MCX precious metals, crude oil gain ahead of Jackson Hole Symposium; Natural gas futures under pressure

MCX saw the majority of the commodities trading in the green on Friday. As investors brace for Fed Chairman Jerome Powell’s speech, precious metal and crude oil futures were trading higher. Base metals saw decent gains during the session as well.

Precious metals

Gold futures on the MCX were trading higher by 0.41% at ₹71,484 per 10 grams. The yellow metal stayed steady throughout the session and is on track to end the week with marginal gains. A cut in interest rates will provide a boost to gold prices as the non-yielding metal becomes more attractive.

Silver futures showcased strength and posted gains of 0.87% at ₹84,470. After ending the previous session with losses, the metal was on track to close the week with minor gains.

Base metals

Base metals fared well during Friday’s session. Depleting inventories helped copper futures on the MCX trade higher by 0.57% at ₹798.50. Meanwhile, zinc futures were up by 0.58% at ₹266.85 and lead futures were trading flat at ₹189.50.

Crude oil and natural gas

Crude oil futures were trading higher by 0.78% at ₹6,207 on Friday. Crude oil prices have failed to gather momentum as weak demand from the world’s second-largest economy, China has remained weak.

Moreover, ceasefire talks between Gaza and Israel have further weakened crude oil prices. With OPEC+ said to increase crude oil supply, it is possible that crude oil prices may sink further.

Natural gas futures were under pressure and were trading lower by nearly 1% at ₹171.3.

Economic data

Global markets will be keeping their eyes on US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Symposium on Friday to get any hints about the trajectory for interest rate cuts. At the same time, soft labour market data has sparked concern regarding a recession in the US.

Meanwhile, Bank of Japan’s governor Kazuo Ueda reaffirmed that they will hike interest rates irrespective of any turbulence in the market.