MCX gold futures trade marginally lower; crude oil futures recover

MCX gold futures were trading slightly lower on Thursday as markets brace themselves for the upcoming Jackson Hole Symposium. Market participants will be looking forward to further confirmation from the US Federal Reserve for an interest rate cut. Meanwhile, crude oil prices recovered slightly on Thursday after being under pressure in the previous session.

Precious metals

Gold futures on the MCX were trading marginally lower by 0.07% at ₹71,777 per 10 grams. The yellow metal has recovered from the previous month’s lows and is approaching its recent highs. Further confidence about rate cuts will act as a catalyst for gold prices and will push the metal higher Silver futures were trading higher by 0.20% at ₹85,031. The metal had hit an intraday low of ₹84,528 and a high of ₹85,148.

Base metals

Base metals were trading mixed on Thursday. Copper futures on the MCX were trading lower by 0.50% at ₹800.15 while zinc futures saw gains of 0.41% to trade at ₹268.05. Lead futures were trading higher by 0.42% at ₹190.20.

After being under pressure for a while, base metals have bounced off recent lows. However, weak demand and economic uncertainties could result in weakness.

Crude oil and natural gas

Crude oil futures on the MCX were up 0.70% at ₹6,072. The commodity fell over 2% in the previous session as tensions in the Middle East subsided and the continuation of weak demand from China. Although crude oil inventories declined, an increase in supply from OPEC+ could further weaken crude prices.

Natural gas futures were trading higher by 0.44% at ₹182.

Economic data

The Jackson Hole Symposium commences on Thursday with Fed Chairman Jerome Powell’s speech set to take place on Friday. Crude oil inventories shrunk by 0.56 million barrels while the Korean central bank kept its interest rates unchanged.

Going ahead, jobless claims data from the US and manufacturing activity data will be key areas of interest. With central banks around the world approaching a more dovish stance, traders have raised bets for rate cuts in the future. However, a change in their tone could affect markets negatively.