Last week, the commodities market experienced a mix of results, with significant price fluctuations observed across energy, metals, and precious metals on the Multi Commodity Exchange (MCX).
Crude oil prices saw a sharp decline of 3.6% due to concerns about a potential global economic slowdown and easing geopolitical tensions, which reduced the risk premium. It is expected that crude oil will trade between Rs 5,600 and Rs 6,100 per barrel in the upcoming week.
Aluminium prices also dropped by 2.1% due to weak industrial demand, particularly from China, the largest consumer of industrial metals. The ongoing manufacturing slowdown is likely to keep aluminium prices rangebound in the near term.
Gold prices decreased by 1.6% influenced by a stronger US dollar, making the metal more expensive for international buyers. However, a significant drop in US bond yields, driven by expectations of a December rate cut by the Federal Reserve, allowed gold to recover from its weekly lows. A bullish outlook on gold remains, with prices potentially rising towards Rs 77,000 per 10 grams on MCX.