COMMODITY MARKET: INDIA'S CRUDE OIL AND NATURAL GAS PRODUCTION DROPPED IN DECEMBER, YELLOW METALS TRADED WITH GAIN

Domestic commodity market was trading higher on Thursday with Bullion prices extended gains while base metals rose on stimulus hopes and weaker dollar. Energy and agri commodities prices traded on mixed. On MCX, Nickel stood as top gainer while Crude oil was top loser in evening trading session.

Commodities Buzz:

Gold and silver prices rose today in Indian markets today, extending the sharp gains of the previous session. On MCX, February gold futures were up 0.17% to ₹49620 per 10 gram in its fourth straight day of gains while silver futures rose 0.72% ₹67474 per kg. Gold prices have seen wild swings this year amid higher US bond yields, strengthening dollar and US stimulus announcement. In global markets, gold prices dipped today on profit-taking after the sharp jump in the previous session. MCXBULLDEX Jan delivery was trading 0.31 % higher at ₹ 15500 unit.

India’s crude oil and natural gas production dropped 3.6 percent and 7.11 percent, respectively, in December 2020 as compared to the same time last year, showed government data released on January 21. The drop was mainly because of a decline in output by ONGC and private sector. On the Multi Commodity Exchange, crude oil for the February delivery eased by 0.59 per cent, to ₹3887 per barrel and touched an intraday high of ₹3896 and an intraday low of ₹3862 per barrel on the MCX. Natural Gas Jan delivery traded positively in the morning session. Currently, Natural Gas futures have shown a bearish line in evening session.

MCXMELTDEX Feb delivery was trading 0.55 % higher at 13857 unit. Base metals traded higher on Thursday as Copper prices witnessed buying from previous session while Nickel prices traded up by more than 1%. Copper prices gained after Chile miners fear lower supply dues to pandemic restrictions against rising demand. Base metals were supported by weaker dollar in expectation of more stimulus from Biden administrations.

Under Agri index, Cotton Jan delivery was trading up by 0.61% to ₹ 21290 per 10 kg while CPO was trading flat and Mentha oil was trading negatively in evening session as lower demand in spot market.