WEEKLY COMMODITY MARKET: A WEAK WEEK FOR BULLION AND BASE METALS PRICES

Domestic Commodity markets ended the week mixed with total turnover stood at Rs. 17236567 lakh in various futures & option contracts for commodities listed at MCX during the week 1st to 5th Mar 2021.

Gold futures ended with gains on Friday but not recovered the weekly losses. The gold prices have witnessed a diminishing week with the prices falling to record lows in 10 months. Gold Apr future settled 2.30% lower at Rs. 44683 per 10 gm while Silver Prices followed the trend line of Gold future. Silver Mar Future settled at Rs. 66166 per kg , down by 1.63%. The US Treasury Yields operating at a one-year-high is the major reason for the fall of the precious metal prices, including the growing optimism in the market for global recovery. The high yields increase the opportunity cost of holding gold, a non-interest-bearing asset.

Base metals complex ended the week lower as most of the commodities has been recorded a heavy fall on Thursday. The positive traded on Friday have not erased the losses. Nickel prices losing the most followed by copper. Nickel prices witnessed selloff on higher supplies after Tsingshan Holding Group Co., the world’s biggest stainless steel producer, announced to supply nickel matte easing tight market demand. Copper prices declined with equity indices over weak US economic data. Nickel Mar future declined by 12.83%, settle at Rs. 1192 per kg.

Crude oil futures ended the week with solid gains after OPEC plus nations agreed to keep output quota unchanged in April. In the futures market, Crude oil recorded weekly gains of 5.21% at Rs. 4844 per barrel. Natural Gas ended the week with weak note, lose by 4.23% at Rs. 197.20 per mmBtu.

Agri commodities ended higher as all the commodities were closed in positive territory. CPO and Cotton railed and registered gains of 1.19% and 1.76% respectively. Mentha oil Feb future ended with flat gains of 0.21%.