The commodity market has recently witnessed significant movements, particularly in industrial metals and energy sectors. On August 12, prices for aluminium, copper, and zinc surged on the Multi-Commodity Exchange (MCX), while silver prices also saw an uptick. In contrast, gold futures experienced a slight decline, and crude oil contracts rose, reflecting a dynamic trading environment.
Gold Futures
Gold prices took a dip on Tuesday, declining by ₹67 to ₹1,00,255 per 10 grams in futures trade. This decrease was attributed to muted demand in the spot market. On the MCX, gold contracts for October delivery fell by 0.07%, with a business turnover of 13,515 lots. Analysts pointed to weak global cues as a contributing factor to this decline. Interestingly, in the international markets, gold futures rose by 0.33% to $3,353.54 per ounce in New York, indicating a divergence between domestic and international trends.
Silver Futures
In contrast to gold, silver prices climbed by ₹423 to ₹1,13,719 per kilogram in futures trade, driven by increased speculative bets. On the MCX, silver contracts for September delivery appreciated by 0.37%, with a turnover of 15,593 lots. Analysts noted that fresh positions built by participants were instrumental in pushing silver prices higher. In the international arena, silver was trading 0.83% higher at $37.92 per ounce, further underscoring its robust performance.
Aluminium Futures
Aluminium prices also saw a positive trend, rising by 95 paise to ₹254.40 per kilogram in futures trade. Speculators were active in building fresh positions, buoyed by a favorable spot market. On the MCX, aluminium for September delivery increased by 0.37%, with a turnover of 522 lots. Analysts attributed this rise to demand from consuming industries, which has been supportive of aluminium prices in the futures market.
Copper Futures
Copper futures surged by 0.24% to ₹891.75 per kilogram on Tuesday, reflecting higher spot demand. On the MCX, copper contracts for September delivery grew by ₹2.15, with a business turnover of 1,577 lots. Analysts noted that increased bets by participants were a key driver behind the rise in copper prices, highlighting the metal’s ongoing appeal in industrial applications.
Zinc Futures
Zinc prices also experienced an uptick, increasing by ₹1.25 to ₹270.95 per kilogram in futures trade. On the MCX, zinc contracts for September delivery traded higher by 0.46%, with a turnover of 249 lots. Market participants indicated that the widening of positions, driven by a pick-up in demand from consuming industries, kept zinc prices elevated in the futures market.
Crude Oil Futures
Crude oil prices rose by ₹23 to ₹5,575 per barrel in futures trade, as participants increased their positions amid firm spot demand. On the MCX, crude oil for September delivery traded higher by 0.41%, with a turnover of 5,145 lots. Analysts suggested that the rise in bets by participants was a significant factor in maintaining higher crude oil prices. Globally, West Texas Intermediate crude was trading 0.38% higher at $64.20 per barrel, while Brent crude rose by 0.39% to $66.89 per barrel in New York.
Guar Seed and Guar Gum Futures
In the agricultural commodities sector, guar seed prices increased by ₹2 to ₹5,258 per quintal in futures trade, supported by a firm trend in the spot market. On the National Commodity and Derivatives Exchange (NCDEX), guar seed contracts for September delivery rose by 0.04%, with an open interest of 48,280 lots. Analysts noted that speculators raising bets, coupled with thin supplies from growing belts, contributed to the rise in guar seed prices.
Similarly, guar gum prices rose by ₹24 to ₹9,819 per quintal in futures trade, driven by increased holdings amid firm spot demand. On the NCDEX, guar gum contracts for September delivery traded higher by 0.24%, with an open interest of 48,550 lots. Traders raised their bets following a firm physical market trend, leading to the increase in guar gum prices.
Coriander Futures
In contrast, coriander prices eased by ₹26 to ₹7,836 per quintal in futures trade, as speculators reduced their positions amid weak demand in the spot market. On the NCDEX, coriander contracts for September delivery declined by 0.33%, with a turnover of 10,060 lots. Market analysts attributed this decline to subdued demand, reflecting the volatility often seen in agricultural commodities.
Cottonseed Oil Cake Futures
Finally, cottonseed oil cake prices grew by ₹14 to ₹3,331 per quintal in futures trade, as speculators created fresh positions amid higher demand. On the NCDEX, cottonseed oil cake for September delivery traded higher by 0.42%, with an open interest of 22,680 lots. Market participants indicated that the widening of positions, driven by increasing demand for cattle feed, significantly influenced cottonseed oil cake prices.
Conclusion
The commodity market remains a complex and dynamic environment, with various factors influencing price movements across different sectors. As industrial metals and energy prices surge, while agricultural commodities exhibit mixed trends, traders and investors must stay informed and agile to navigate this ever-changing landscape. With ongoing developments, the market’s trajectory will be closely watched in the coming days.
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