MCX precious metals trade in the red ahead of US PCE inflation data

MCX precious metal futures were trading in the red while crude oil futures managed to find support to trade higher. Base metal futures saw some selling pressure and natural gas futures saw some profit taking. Markets have reacted positively to China’s stimulus measures however, inflation data and other macroeconomic factors will still be on the radar of market particpants.

Precious metals

Gold futures on the MCX were trading lower by 0.33% at ₹75,135 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 lower by 0.38% and were trading at ₹92,315 per kg. The metal had hit an intraday high of ₹92,589 and was off its day’s low of ₹91,577. Silver, along with base metals are positioned to benefit from a revival in Chinese demand.

Base metals

Base metals saw some profit booking on Friday and were trading lower.

Copper futures on the MCX trading lower by 0.30% at ₹859.80. Meanwhile, zinc futures were trading lower by 0.55% at ₹280.95. Lead futures were trading marginally lower by 0.08% at ₹185.40.

Crude oil and natural gas

MCX crude oil futures on Friday were trading higher by 0.74% at ₹5,705 per barrel. Crude oil prices have remained under pressure as the supply of the commodity has increased while the demand has not increased proportionally. As a result, the commodity erased all of its gains from the previous week and is poised to close the week in the red.

After a significant rally in natural gas futures in the previous session, the commodity has taken a breather. Natural gas futures on the MCX were trading lower by 0.30% on Friday and were trading at ₹229.5.

Economic data

On Friday, the People’s Bank of China announced a reduction in reserve requirement ratio by 50 basis points. Further, the bank also reduced the 14-day reverse repo rate. China’s measures to boost and revive demand has benefitted the commodities market.

Traders and investors will now keep their eyes on the personal consumption expenditure (PCE) inflation data from the US which is due later today. On Thursday, the US reported a reduction in initial jobless claims, signaling strength in the labour market.