MCX zinc futures hit fresh highs, gold futures stay in demand as uncertainties rise

MXC zinc futures hit fresh highs on Thursday while natural gas futures saw considerable gains. Meanwhile, precious metal futures were trading in the green along with lead futures. Crude oil futures were trading higher with decent gains as well. Markets are bracing themselves as the upcoming US presidential election nears along with an interest rate decision from the US Federal Reserve.

Precious metals

Gold futures on the MCX were trading higher by 0.70% at ₹78,360 per 10 grams. Gold prices remained strong as uncertainties regarding the upcoming US election, interest rate cuts, and geopolitical tensions provided support to the yellow metal.

Meanwhile, silver futures on the MCX were up by 1.58% and were trading at ₹98,495 per kg. The metal hit an intraday high of ₹98,528 and was off its day’s low of ₹97,383. After hitting record highs in the previous session, the metal came under selling pressure.

Base metals

MCX base metal futures were trading mixed Thursday. Copper futures on the MCX trading lower by 0.30% at ₹803.95. Meanwhile, zinc futures hit a fresh 52-week high of ₹300.25 and were trading higher by 1.72% at ₹295.45. Lead futures were up by 0.42% at ₹181.25.

Crude oil and natural gas

MCX crude oil futures on Thursday were trading higher by 1.49% at ₹6,064 per barrel. Despite a steep sell-off in the previous week, crude oil futures climbed as supply concerns rose as the Middle Eastern conflict saw escalation. However, forecasts of a weak demand from China still remain a pressing concern.

Natural gas futures saw significant gains on Thursday and were trading higher by 3.19% during the session. The commodity was trading at ₹200.7.

Economic data

Pre-election jitters were one of the primary factors affecting markets. Additionally, a less dovish stance from the US Federal Reserve has added to the uncertainty in markets. As a result, markets are factoring in a lower rate cut and moving towards safe-haven assets like gold.

Meanwhile, Bank of Japan’s Governor Kazuo Ueda stated that the central bank will take time to achieve their inflation target and hike interest rates.

PMI data for October showed that businesses in the UK saw the slowest growth in the past 11 months. Further, hiring declined for the first time this year. Business activity in Germany declined but on a lesser scale than the previous month.