Silver Glitters Through The Fortnight
Meanwhile, the vaccinations are predicted to give a boost to global oil demand, particularly during the peak travel season in the third quarter
The commodity markets cheered during the fortnight as all the commodities traded in green. For the recent fortnight, the commodity leading the list was silver. The trading of silver in an increasing trend can be attributed to the weakness in the dollar and geopolitical tension between Israel and Gaza, which supported the bullion prices. Gold and silver prices are expected to rally further. Oil prices climbed during the quarter backed by optimism about a strong rebound in fuel demand in developed countries. Also, China, in the second half of the year overshadowed rising concerns of a full lockdown in India to control the pandemic.
The strong demand witnessed in regions such as North America, Europe and China are responsible for enlightening the overall outlook for oil prices. Also, the vaccinations are predicted to give a boost to global oil demand, particularly during during the peak travel season in the third quarter. The copper prices surged higher due to the threat of strikes at mines in Chile and investors’ belief of a rally in copper prices further offset weak Chinese factory data. Aluminium prices showed further increase due to weaker dollar, hardness in the physical market and supply worries in China as well as reduction of stocks at LME warehouses. The data recorded during the fortnight on MCX says that all the commodities traded in a positive territory.
"For the recent fortnight, the commodity leading the list was silver. The trading of silver in an increasing trend can be attributed to the weakness in the dollar and geopolitical tension between Israel and Gaza, which supported the bullion prices"
Out of all the positive performers, the performance of silver emerged to be superior. While MCX Silver reported a rise of 3.43 per cent during the fortnight, Brent oil recorded gain of 2.55 per cent following silver. MCX Gold and Crude oil rose by 2.44 per cent and 2.43 per cent respectively, almost replicating each other’s performance. MCX Copper and MCX Aluminium reported gains of 2.33 per cent and 1.93 per cent, respectively. MCX Zinc, MCX Lead and MCX Cotton chose to remain subtle by giving an increase of 1.73 per cent, 1.59 per cent and 1.25 per cent, respectively.