Gold prices rise, silver stable, recovery in base metals and crude: condition of commodity market.

Continuous rise in gold prices

There is an upward trend in gold prices on Comex. Gold is trading near 2-week high of $2,697.

• In the domestic market too, gold prices saw an increase of more than half a percent.
• The main reason behind this is the possibility of interest rate cuts in America.
• Next week, prices are being supported by expectations of a 0.25% rate cut in the US.

Keep an eye on upcoming US inflation data

The market is now eyeing America’s inflation data, which can further affect gold prices.

Limited movement in silver market

Limited trading was seen in silver prices.

• Silver prices in the global market are near $31.
• Silver prices in the domestic market remained stable around ₹95,568 level.

Mixed trend in base metals

Breaking yesterday’s weakness, base metals witnessed a mixed performance in the domestic market in today’s early trade.

• The highest increase was seen in copper.
• Except lead, other metals recorded flat to positive trading.

recovery in crude oil

Crude oil prices showed improvement due to reduction in concerns related to Syria.

• Brent crude prices rose above $72.
• Purchase of more than half percent was also recorded in Nymex crude.
• The market’s eyes are now fixed on US inventory data.

natural gas boom

Natural gas prices rose 1% to ₹270 in early trade.

Condition of masala packs and other agricultural products

Masala Pack:

• Spices business remained strong in the initial session.
• Guar pack also remained flat to positive.
• However, pressure was seen in castor and cottonseed.

Palm Oil:

• Palm oil prices in the global market are close to the highest level in two and a half years.
• Palm oil prices in Malaysia have reached above 5,150 ringgit.

Soybean:

• Soybean prices were supported by increase in demand and decrease in supply.
• Prices have increased on expectations of improving conditions in China.

Reduction in sowing of crops in Gujarat

A decline has been recorded in the sowing of winter crops in Gujarat.

• A decrease of 29% has been observed compared to last year.
• Total sowing was affected due to reduction in cultivation of gram and wheat.
• Till December 9, 2024, crops were sown in a total of 25.38 lakh hectares in the state.
• There was a decline of 17% in the sowing of gram, which came down to 95 thousand hectares.