COMMODITY MARKET: GOLD PRICES FALL, A DAY AFTER BIG GAINS; CRUDE OIL PRICES DROP

Commodity prices were trading weak on Tuesday with bullion and base metals commodities trading lower. Energy witnessed mix trading with Natural Gas rising after a heavy decline in recent days.

In commodity’s basket, Natural Gas Dec future stood as top gainer, gained by 0.56% at Rs.180.40 Per mmBtu whereas Crude oil, Silver, Copper, Lead, Aluminium, Zinc, MXMELTDEX,MCXBULLDEX, Mentha oil, Gold, GOLDM, GOLDGUINEA,GOLDPETAL, CPO were trading negatively.

In the morning trade, Both Gold and Silver prices extended gain due to hectic demand. In afternoon session, bullion prices downside amid a strong rally in equity markets. On MCX, gold futures edged 0.16% lower to Rs.49867 per 10 gram, after rising to Rs.50175 earlier in the session. Silver futures fell 0.75% to Rs.65007 per kg.

Crude oil prices continued downside as a continuing rise in COVID-19 infections led countries to impose a myriad of mobility restrictions, dampening sentiment in the market, and as progress over the US fiscal stimulus bill remained elusive.

Base metals prices traded weak on Tuesday as breakdown in BREXIT talks lowered investment appetite with recovery in dollar index. Copper prices traded under pressure as labour union accepted wage offers in Chile avoiding another strike. The surge in virus cases across globe has paused the rally in base metals giving a rain check to the recent rally.