Aluminium Shines Along With Gold
After the Suez Canal crisis which led to a crash in gold prices, the gold prices are expected to regain their lost momentum as overall there is a bullish sentiment for the yellow metal
The performance of the commodity markets was somewhat on the same track during the current fortnight as compared to the previous fortnight. Aluminium prices were seen climbing up as market participants increased their long position as indicated by the open interest data. The international aluminium futures are expected to be in a bullish trend as the vaccination process has taken pace and the world is relatively much more prepared for this ongoing pandemic wave as compared to the first wave during the corresponding period last year.
"The international aluminium futures are expected to be in a bullish trend as the COVID vaccination process has taken pace and the world is relatively much more prepared for this ongoing pandemic wave as compared to first wave during the corresponding period last year"
After the Suez Canal crisis which led to a crash in gold prices, the gold prices are expected to regain their lost momentum as overall there is a bullish sentiment for the yellow metal. Following the aluminium futures, the metal futures saw an uptrend during the fortnight. This can be attributed to the uptrend in metal prices due to improvement in the Chinese data and weakening of the dollar. The trend is predicted to continue in the medium term. There was a substantial decline in the oil futures, which can be traced to concerns raised on demand recovery as many European countries suspended use of AstraZeneca-Oxford vaccine which lowered the sentiment of US oil by Asian refineries.
The data recorded during the fortnight on MCX states that aluminium futures were the strongest gainers, gaining 2.41 per cent followed by gold futures which rose by 2.39 per cent. Lead and zinc futures inched up by 0.53 per cent and 0.14 per cent, respectively. WTI crude oil prices and Brent crude oil prices were again the weakest performers during the current fortnight. WTI crude oil prices plunged by 9.90 per cent and Brent crude oil prices declined by 8.35 per cent. MCX Cotton dipped by 3.34 per cent. The decline in MCX Cotton was followed by MCX Silver which slipped by 2.11 per cent while MCX copper declined by 1.05 per cent.