The decrease in demand for gold and silver has continued over the week. MCX Gold futures were down 0.39 percent and at Rs. 29,767 per 10 grams in the earliest session. The while metal is also facing low the global market, coming down 0.56 percent at Rs. 38,081 per kg. Apart from these metals, other commodities witnessed fluctuations in the market over the week.
Key Commodities: The Current Status
Gold: It is expected that the glittering metal prices will go sideways, mainly due to the recent comments of Jerome Powell, the Federal Chairman, regarding the gradual interest rate hike. Thus, gold prices have been facing low during the week and are expected to trade lower in the coming week.
Crude Oil: It is no secret that oil business is facing difficulties since the start of a geopolitical game of sanctions. The increasing pressure from the U.S. is forcing countries to rethink their tie-ups with Iran, the global supplier of oil, and in turn, the oil prices are likely to go lower. In addition, Saudi Arabia has offered extra crude oil supplies to several customers, which is hurting the oil prices.
Base Metal: The comment of Powell and even recent tweets of Trump has little impact on the steel and aluminum industry.
Agricultural Commodities: There is some positive news from the soft commodities. Soybean futures are expected to rise owing to the steady rise in the demand from oil factories. This made soy oil jump from 35 percent to 45 percent. Moreover, cotton prices are also expected to trade sideways, owing to the improved demand and rise in MSP.
As reported by Economic Times, steady domestic demands and higher domestic stocks will keep the prices steady.
Spices: As reported by the Economic Times, Angel Commodities forecasts Jeera futures to move sideways with upward pressure due to more exports to China and Bangladesh.
Turmeric: The demand for turmeric is expected to increase during the sowing season, which may be favorable to its prices. However, experts believe that the improved showing in the regions of Karnataka, Tamil Nadu, and Maharashtra may push turmeric prices to sideways.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]