On August 14, the commodity market witnessed a notable uptick in industrial metals, excluding zinc, on the Multi-Commodity Exchange (MCX). Additionally, both silver and gold futures experienced significant gains, reflecting a robust trading environment. This article delves into the performance of various commodity futures, highlighting the factors influencing their price movements.
Gold Futures
Gold prices saw a rise of ₹112, reaching ₹1,00,297 per 10 grams in futures trade. This increase was primarily driven by speculators creating fresh positions in response to strong spot demand. On the MCX, gold contracts for October delivery traded higher by 0.11%, with a business turnover of 13,099 lots.
Globally, Comex gold futures for December delivery also reflected a positive trend, rising by 0.23% to $3,363.64 per ounce in New York. The combination of local and international demand has bolstered gold prices, making it a focal point for investors.
Silver Futures
Silver prices followed suit, climbing by ₹116 to ₹1,14,913 per kilogram. This surge was attributed to increased betting by market participants. On the MCX, silver contracts for September delivery appreciated by 0.1%, with a business turnover of 14,754 lots.
Despite the domestic gains, silver was trading marginally higher at $38.51 per ounce in New York. Analysts noted that the fresh positions built by participants were instrumental in driving up silver prices, reflecting a bullish sentiment in the market.
Aluminium Futures
Aluminium prices also saw a modest increase, rising by 40 paise to ₹254.90 per kilogram. This uptick was fueled by speculators building fresh positions amid a positive trend in the spot market. On the MCX, aluminium for September delivery increased by 0.16%, with a turnover of 690 lots.
Market analysts indicated that the demand from consuming industries played a crucial role in supporting aluminium prices, showcasing the metal’s importance in various industrial applications.
Copper Futures
Copper futures experienced a slight increase, reaching ₹893.75 per kilogram due to heightened spot demand. On the MCX, copper contracts for September delivery grew by 20 paise, or 0.02%, with a business turnover of 2,661 lots.
Analysts attributed this rise to increased bets by participants, highlighting copper’s role as a barometer for economic activity given its widespread use in construction and manufacturing.
Zinc Futures
In contrast, zinc prices fell by 0.06% to ₹269.80 per kilogram. This decline was a result of speculators reducing their exposure, influenced by negative cues from the spot market. On the MCX, zinc contracts for September delivery traded lower by 15 paise, with a turnover of 899 lots.
Market analysts noted that the trimming of positions by participants was primarily due to slackened demand from consuming industries, which weighed heavily on zinc prices.
Cottonseed Oil Futures
Turning to agricultural commodities, cottonseed oil cake prices slipped by ₹2 to ₹3,333 per quintal. This decline was attributed to participants reducing their bets following weak trends in the spot market. On the National Commodity and Derivatives Exchange (NCDEX), cottonseed oil cake for September delivery traded lower by 0.06%, with an open interest of 24,740 lots.
Analysts suggested that a sell-off by participants at existing levels amid a subdued market trend contributed to the downward pressure on cottonseed oil cake prices.
Coriander Futures
In contrast, coriander prices increased by ₹16 to ₹7,852 per quintal, driven by speculators increasing their holdings in response to a firm trend in the spot market. On the NCDEX, coriander contracts for September delivery climbed by 0.20%, with a turnover of 12,395 lots.
The firm trend in the spot market, coupled with restricted supplies from producing regions, played a significant role in pushing up coriander prices.
Guar Seed and Guar Gum Futures
Guar seed prices, however, experienced a decline, falling by ₹34 to ₹5,226 per quintal amid ample supplies. On the NCDEX, guar seed contracts for September delivery dropped by 0.65%, with an open interest of 55,665 lots. Marketmen attributed this downward trend to increasing supplies from growing regions.
Similarly, guar gum prices fell by ₹79 to ₹9,756 per quintal as traders offloaded their holdings in line with a weak trend in the spot market. On the NCDEX, guar gum for September delivery declined by 0.81%, with a turnover of 53,345 lots. Analysts noted that slack demand in the spot market and ample supplies from growing regions exerted pressure on guar gum prices.
Conclusion
The commodity market on August 14 showcased a mixed bag of performances across various sectors. While industrial metals and precious metals like gold and silver surged due to strong demand and speculative trading, other commodities like zinc, cottonseed oil cake, and guar products faced downward pressure. As market dynamics continue to evolve, traders and investors will need to stay vigilant and informed to navigate the complexities of the commodity landscape.
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