MCX Precious Metals Decline Ahead of Key US PCE Inflation Data
In the latest trading session, MCX precious metals experienced a downturn, while crude oil futures managed to maintain some gains.
Both base metals and natural gas futures saw profit-taking following a week of significant price increases.
Precious Metals Update
Gold futures on the MCX slipped by 0.33%, trading at ₹75,135 per 10 grams. After reaching new highs in the previous session, the yellow metal is now fluctuating within a narrower range.
Meanwhile, silver futures declined by 0.38%, settling at ₹92,315 per kg. Silver reached an intraday high of ₹92,589 before retracting from a low of ₹91,577.
The recent measures to stimulate the Chinese economy could support a resurgence in demand for silver and other base metals, as highlighted by recent trends in MCX Base Metals.
Base Metals and Crude Oil Insights
Profit booking in base metals led to a decline in prices. Copper futures were down 0.30%, trading at ₹859.80, while zinc futures fell by 0.55% to ₹280.95. Lead futures also recorded a slight drop, down 0.08% at ₹185.40.
In contrast, crude oil futures rose by 0.74%, reaching ₹5,705 per barrel. Although crude oil prices faced upward pressure, they have been unable to sustain gains amid increasing supply and relatively stagnant demand, erasing all prior week’s gains and positioning the market for a potential close in the red.
Natural gas futures, which had rallied significantly in the previous session, took a breather on Friday, trading down 0.30% at ₹229.5.
Economic Landscape
On Friday, the People’s Bank of China announced a 50 basis point reduction in the reserve requirement ratio, coupled with a cut to the 14-day reverse repo rate. These measures aim to bolster demand and have positively impacted the commodities market.
Market participants are now closely watching the upcoming US Personal Consumption Expenditures (PCE) inflation data, set to be released later today.
On Thursday, the US reported a decrease in initial jobless claims, highlighting ongoing strength in the labor market. As investors brace for these economic indicators, volatility in precious metals and other commodities may be anticipated.