COMMODITY MARKET: GOLD PRICES CONTINUE TO FALL, BASE METALS WEAK

Domestic commodity market was trading negatively as all the segments were turned to downside on Thursday. Energy segment have shown bearish momentum and traded negatively throughout the session after rising in previous close. Coming back to Base metals and bullion prices were extended their losses and continued to trade negatively throughout the session. On MCX, Natural Gas stood as top loser while Mentha oil was the only gainer in evening hour of trading.

Commodities Buzz:

Global demand for gold fell to its lowest in 11 years in 2020 as the coronavirus upended the market, triggering huge stockpiling by investors but collapsing sales of jewellery and purchase by central banks. Gold prices on the MCX in the futures market were quoting with losses. Silver in line also retreated lower. Gold futures on MCX were down 0.23 per cent at ₹ 48751 per 10 grams. Silver futures dropped 0.40 per cent to ₹ 66273 per kg. MCXBULLDEX Feb delivery was trading 0.28 % lower at ₹ 15285 unit.

Crude oil futures were trading lower as participants increased their short position as seen by the open interest on Thursday. The crude oil prices declined on worries of fuel demand amid restriction imposed by nations to contain COVID-19 outbreak offsetting the huge drawdown in US crude inventories. Crude oil for the February delivery dropped by 0.72 per cent, to ₹3865 per barrel and touched an intraday high of ₹3868 and an intraday low of ₹3828 per barrel. Natural Gas Feb future gave gap down opening and again trading lower in the morning session as participants increased their short positions as seen by the open interest. Natural gas futures slide to ₹193.50 per mmBtu, Natural gas price had closed at ₹ 199.80 per mmBtu.

On Today, base metal prices saw a negative trend while the biggest loser was Copper, lose by 1.34% at ₹ 590.50 per kg. Lead, Nickel and Aluminium were trading lower near 1%. Zinc was trading lower by 0.15% at ₹204.50 per kg. MCXMELTDEX Feb delivery was trading 0.88 % lower at 13337 unit. All the Base metals were trading negatively due to lower demand.

Under Agri index, CPO and Cotton were trading negatively while Mentha oil was gained 0.03% at ₹ 974.30 per kg.