COMMODITY MARKET: YELLOW METALS FALL SHARPLY POST BUDGET ANNOUNCEMENTS

Domestic commodity market was trading mixed as energy and agri commodities traded positively, while Bullion and base metals traded under pressure on today. On MCX, Natural Gas, Crude oil, Lead, Mentha oil, CPO traded higher. On other hands, Silver, Gold, Copper, Zinc, Nickel, Aluminium, cotton traded lower.

Commodities Buzz:

Gold and Silver prices witnessed a sharp decline in Indian markets on Tuesday, a day after the government announced a cut in import duty on the metals in Budget 2021-22, a move that will help bring down prices of the precious metals in the domestic market and boost exports of gems and jewellery. The customs duty on gold and silver was reduced to 7.5 per cent. Presently Gold and Silver attract a basic customs duty of 12.5 per cent. Gold April futures have tumbled by 1.02% to Rs 48221 per 10 grams while the silver March futures dropped by 3.96% to Rs 70746 per kg. MCXBULLDEX Feb delivery was trading 1.80 % lower at Rs. 18348 unit.

Natural gas delivery for February surged above 6% on today. The price surged on increased fuel demand as the Northeastern US has been hit by a powerful winter snowstorm, pummeling a vast swath stretching from Pennsylvania through New England and causing widespread disruption in New York City and other major urban centers in the region. Crude oil was also trading nearly 3% higher.

On Today, base metal prices saw a negative trend. All the base metals commodities traded in negatively except Lead. Lead Future gained by 0.50% to Rs. 162.15 per kg. Other Base metals traded marginally down.

Under Agri index, CPO and Mentha oil were trading positively while Cotton Feb delivery was trading down 0.05% at Rs.21080.00 per bales.