Commodity Market Updates for Jan 24, 2017
Gold futures closed higher in the domestic market on Monday on the back of a decline in the U.S. dollar and uncertainty for trade and economic growth at the start of Donald Trump’s presidency.
In addition to its haven status, gold tends to move inversely to the dollar because a stronger greenback can make commodities pegged to the buck, including metals, more expensive to buyers using other monetary units.
At the MCX, gold futures for February 2017 contract ended at Rs 28804 per 10 grams, up by 0.63 per cent, after opening at Rs 28,650 against a previous close of Rs 28,625. It touched the intra-day high of Rs 28,857.
Silver futures closed higher in the domestic market on Monday as participants raised their bets amid firming global trends. Analysts attributed the rise in silver prices at futures trade to a firming trend in the precious metals overseas. At the MCX, silver futures for March 2017 contract closed at Rs 41,720 per kg, up by 0.71 per cent, after opening at Rs 41,241, against a previous close of Rs 41,425. It touched the intra-day high of Rs 41,830.
Crude oil futures closed lower in the domestic market on Monday as concerns over the potential for a sizable increase in U.S. crude production outweighed support from Saudi Arabia’s energy minister.
Unrelenting worries about production picking up in other regions that didn’t agree to curb output, including U.S. shale-oil producers, weighed on prices.
At the MCX, crude oil futures for February 2016 contract closed at Rs 3625 per barrel, down by 0.36 per cent, after opening at Rs 3625, against a previous close of Rs 3638. It touched the intra-day low of Rs 3575.