COMMODITY MARKET: NATURAL GAS RISE ABOVE 5%; BASE METALS PRICES TRADE NEGATIVELY

Domestic commodity market was trading negatively as most of the segments were traded on negatively on Wednesday. Energy segment have shown bullish line. At the same time Bullion and Base metals were trading negatively throughout session. On MCX, Natural Gas stood as top gainer while CPO was top loser in evening trading session.

Commodities Buzz:

Gold prices on the MCX in the futures market were quoting with losses. Silver in line also retreated lower. Gold prices held steady ahead of the US Federal Reserve's monetary policy decision due later in the day and as investors awaited a stimulus package in the world's largest economy. On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.76 percent at ₹ 48768.00 for 10 grams. March silver was trading 0.87 percent lower at Rs 65955.00 a kilogram. MCXBULLDEX Feb delivery was trading 0.73 % lower at ₹ 15285 unit.

Oil prices climbed on Wednesday after industry data showed U.S. crude stockpiles fell unexpectedly last week and China, the world's second biggest oil user, recorded its lowest daily rise in COVID19 cases in more than two weeks. Crude oil for the February delivery jumped by 0.49 per cent, to ₹3858 per barrel and touched an intraday high of ₹3881 and an intraday low of ₹3850 per barrel. Natural gas futures extended gains on Tuesday, as traders absorbed news of weather forecasts shifting even colder after a similar change in models over the weekend. The weather outlooks increased the likelihood of robust heating demand the rest of January and into early February, fueling futures. Natural Gas Feb delivery traded higher by 5.40% at Rs. 197 per mmBtu.

MCXMELTDEX Feb delivery was trading 1.36 % lower at 13593 unit. All the Base metals were trading negatively due to lower demand. Zinc, Nickel, Copper, Lead, Aluminium Feb futures were trading down by 2.94%, 1.70%, 0.97%, 0.43% ,0.21% receptively.

Under Agri index, CPO Jan delivery future was trading up by 1.98% and Mentha oil Feb future up by 0.21%. At the same time Cotton was trading down by 0.33%.