Commodities corner: Crude oil, gold futures decline on low demand

A low demand, likely driven by the relative easing of the geopolitical tensions in Middle East, pushed lower the prices of crude oil and gold in the futures trade on Monday, April 29.

Gold, a safe haven asset whose prices has risen by over 43% since the onset of COVID-19 pandemic in March 2020, has come down from the all-time highs in the international market. The global rate had peaked to $2,431.29 an ounce on April 12, as markets feared an outbreak of Iran-Israel military clashes.

Since then, the easing of tensions has softened the gold rates. On India's Multi Commodity Exchange (MCX), gold contracts for June delivery traded marginally lower on Monday, sliding by ₹2 to ₹71,498 per 10 grams in a business turnover of 19,417 lots.

Analysts attributed the fall in gold prices to weak global cues and profit booking at higher level.

Globally, gold was trading 0.12% lower at $2,344.4 per ounce in New York.

Crude oil futures also slide

Crude oil futures on Monday declined 0.74% to ₹6,947 per barrel as participants trimmed their positions on low demand.

On the MCX, crude oil for May delivery fell ₹52 or 0.74% to ₹6,947 per barrel with a business volume of 5,221 lots.

Globally, West Texas Intermediate crude oil traded 0.94% lower at $83.06 per barrel, while Brent crude was trading 1.18% lower at $88.44 per barrel in New York.