Commodity prices rose and fell mixed on Thursday, continuing the trend of the previous trading day. On Thursday, as the recovery of the U.S. dollar ended in red, the price of gold fell to daily gains. Base metals rebounded strongly. Demand growth was optimistic, and Chilean supply worries. Due to the bullish weekly inventory data, crude oil prices remained within a relatively high range.
Crude Oil Prices
Crude oil prices were weak, and the WTI benchmark crude oil price of the New York Mercantile Exchange fell 0.59% in early trading to close to US$65.82 per barrel. Furthermore, crude oil prices are subject to pressure from the possible recovery of Iranian supplies and weak demand from emerging economies. The weekly inventory draw in the U.S. failed to support Thursday’s price, and a stronger dollar also limited upside. Traders and investors still diverge on uneven fundamentals, which keeps oil prices within a specific range.
Base Metal Prices
On Thursday, the prices of base metals were mixed. Except for nickel, most metals maintained a stable trading range. Due to Chile and China’s concerns about policy actions, supply concerns have caused global copper to rise and fall. Trading in base metals is under pressure due to the strengthening of the U.S. dollar. Also, the possibility exists of China considering canceling emergency stimulus measures to ease the stress of rising prices.
Gold prices were firm on Thursday. COMEX spot gold prices were close to US$1,897 per ounce, while COMEX spot silver prices were flat at US$27.65 per ounce in early trading. Precious metals reversed their gains on Wednesday as investors weighed inflation concerns. The strengthening of the U.S. dollar caused gold prices to fall below US$1,900 per ounce. As analysts say, it is important to start discussing plans to reduce large-scale bond purchases in the next few months.
MCX gold June futures almost touched the critical resistance zone of the rupee. It was 49250 in yesterday’s transaction. However, the price failed to take advantage of its gains and closed in terms of losses. The main support level for the day was the rupee. 48330 is followed by Rs. 48150. At the same time, the price is hovering near the resistance of the long-term trend line. Besides, a decisive breakthrough of this resistance will strengthen the bullish situation. The strength index is 65, indicating a bullish trend. The price of a day will fluctuate within the range of Rs. 48330-49100.
MCX silver July futures failed to maintain the upward trend, and the price fell sharply. At the same time, the price is hovering near the midline of the Bollinger Band (71000). It coincides with the support of the uptrend channel. The area of 70,500-71,000 rupees is the critical support for silver. The RSI on the daily chart is hovering near the 54 marks, indicating a sideways trend.