Fifa World Cup
Homemarket Newscommodities News

Commodity wrap on September 20: Silver gains, crude oil plunges 1.5%

Commodity wrap on September 20: Silver gains, crude oil plunges 1.5%

Commodity wrap on September 20: Silver gains, crude oil plunges 1.5%
Profile image

By Sept 20, 2021 2:43:03 PM IST (Published)

Crude oil futures plunged on Monday, Silver rose half a percent and Gold rose marginally.

India's commodity markets saw sharp activity in the bullion pack on Monday. While silver and crude palm oil futures were in high demand, natural gas and copper were under selling pressure.

Recommended Articles

View All

Here are key highlights of today's trade and more:
International gold and silver spot and futures crashed on Friday as the dollar gained, putting it on course for a second weekly dip with investors focused on the US Federal Reserve's tapering strategy. The prices of domestic precious metals also tumbled following the weak international trend.
International gold and silver started weaker on Monday in Asia trade, pressured by a firmer dollar. Investors continue to await Fed's guidance on when it is likely to start withdrawing its bond-buying program. The Fed's policy-setting committee will meet on Tuesday and Wednesday.

"A strong hawkish shift could prompt another knee-jerk, downward reaction in gold and silver despite being priced in," Sriram Iyer of Reliance Securities said.
Gold and silver futures were trading marginally higher with Silver trading Rs 93 higher at Rs 59,992 per kilogram.
"Technically, MCX Gold October below 46300 levels could see a Bearish momentum up to 45800-45500 levels. Resistance is at 46200-46500 levels. MCX Silver December below 60500 levels could see 59300-58000 levels. Resistance is at 60700-61500 levels. MCXBULLDEX September could trade on Bearish note within the range of 13500-13850 levels," he added.
Globally, spot gold rates were marginally higher at $1,754 and silver was up half a percent at $22.445.

In the oil market, crude oil extended losses from Friday after USD jumped to a three-week high. Both benchmarks -- US oil and Brent crude -- fell over 1.5 percent to trade at $70.75 and $74.26.
The supply is slowly returning to the market after two hurricanes in the US Gulf of Mexico. However, according to data from the Bureau of Safety and Environmental Enforcement, it is estimated that approximately 28 percent of the current oil production in the Gulf of Mexico is still shut-in.
On MCX, crude oil futures were down 1.5 percent at Rs 5,208. "Technically market is under long liquidation as it has witnessed a drop in open interest by -3.5 percent to settle at 2647 while prices down -59 rupees. Now Crude oil is getting support at 5,239 and below same could see a test of 5,191 levels, and resistance is now likely to be seen at 5,338, a move above could see prices testing 5,389," Kedia Advisory said.

Industrial material/base metals
Copper prices were down nearly 2 percent Monday after China said it will continue to release the metal from its state reserves, in an effort to overcome demand-supply mismatch.
Similarly, Nickel and Zinc futures were down 1.8 and 1 percent, respectively as China said copper and zinc prices are still high and that it will guide prices back to reasonable levels.
China has released over 4,20,000 tonnes of metals in three batchs this year. They conduct public auctions at prices slightly lower than market prices.

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!