A Case Of Mixed Fortunes

The data recorded during the fortnight on MCX states that out of all the positive performers, the performance of Crude oil prices and Brent oil prices attracted the investors

The recent fortnight was cheered by positive performance in the commodity markets. The performance of all the commodities except cotton was noteworthy. The oil prices caught most of the attention during the fortnight. Meanwhile, the weakening of US dollar can be identified as a reason which supported the rise in oil prices as it made oil cheaper to buy for holders of other currencies. Having said this, price gains were seen to be capped due to the spooky second wave of the corona virus. 

Crude oil prices are also witnessing positive momentum in anticipation of an economic recovery in big markets such as the US, China, India, Japan, South Korea, the Netherlands, Germany and Spain. US Energy Information Administration (EIA) expects that at the time the inventories remain high, it is predicted that they will decline due to rise in global oil demand. Gold and silver recorded substantial gains as yields dropped for US’ 10-year treasury notes coupled with geopolitical tensions that rose between the United States and China as well as Russia.

"The weakening of US dollar can be identified as a reason which supported the rise in oil prices as it made oil cheaper to buy for holders of other currencies. Having said this, price gains were seen to be capped due to the spooky second wave of the corona virus."

Aluminium prices were also seen increasing due to the supply worries in China and Russia which boosted the price sentiment. Besides, the proliferation of the virus cases has led to the dipping of cotton prices. The data recorded during the fortnight on MCX states that out of all the positive performers, the performance of Crude oil prices and Brent oil prices attracted the investors. Crude oil prices were the strongest gainers gaining 8.22 per cent followed by Brent oil prices which rose by 7.74 per cent. 

MCX Silver and MCX Gold futures surged up by 5.92 per cent and 5.47 per cent respectively. On MCX, aluminium futures recorded a gain of 5.40 per cent whereas copper futures registered an increase of 5.07 per cent. Zinc futures and lead futures rose by 4.42 per cent and 1.65 per cent respectively. The only commodity which ended in red during the fortnight was MCX Cotton, which inched down by 0.91 per cent.