Indian commodity markets opened their second session of May on Thursday with a mixed picture — precious metals under mild pressure, crude oil and natural gas firming up, and base metals broadly flat — as the ongoing Iran-US standoff continued to set the tone for global energy and safe-haven positioning.
Where each commodity stands
Gold on the MCX was trading at Rs 1,50,265 per 10 grams, down Rs 846 or 0.56% on the day. Silver was at Rs 2,44,301 per kg, down a marginal Rs 155 or 0.06%. Copper was largely unchanged at Rs 1,280.85 per kg, up just Rs 0.30 or 0.02%. Zinc was at Rs 342.95, down Rs 0.50 or 0.15%. Crude oil was trading at Rs 9,928 per barrel, up Rs 61 or 0.62%. Natural gas was the standout mover, up Rs 4.10 or 1.56% to Rs 267.20.
What is driving the moves
The mild pullback in gold comes after a period of significant strength. Gold prices rose above $4,600 an ounce last week, rebounding from one-month lows as the dollar weakened — though bullion remains under pressure from dimming prospects for a US-Iran peace deal and expectations that the Strait of Hormuz would not reopen anytime soon. The Iran conflict has created an unusual dynamic for gold — while geopolitical risk typically supports safe-haven demand, the energy supply disruption has heightened inflation concerns and reinforced expectations that major central banks may keep interest rates elevated for longer or potentially tighten further — a headwind for non-yielding assets like gold.
The US Federal Reserve left its policy settings unchanged at its latest meeting, though four officials dissented, underscoring rising divisions over the policy outlook amid heightened uncertainty stemming from the Iran conflict. Rate uncertainty is keeping a lid on both gold’s upside and its downside.
On crude, the 0.62% uptick reflects the persistent supply disruption from the Strait of Hormuz. The energy price index surged 41.6% in March, led by crude oil’s 40.5% jump — and while daily volatility has moderated from those extremes, the market is pricing in continued disruption with no clear diplomatic resolution in sight. Trump has said the US would keep its naval blockade on Iran in place until it agrees to a nuclear deal, while Tehran pledged not to abandon its nuclear programme.
Natural gas leading gains at 1.56% reflects both the broader energy supply tightness and seasonal demand patterns as summer cooling requirements begin to build across Asia.
Copper’s near-flat performance is consistent with the broader base metals picture — industrial demand signals remain mixed as global growth concerns linger, though the metal has held its ground given supply-side constraints and the ongoing energy transition demand for copper in electrification infrastructure.
Disclaimer: Commodity prices are volatile and subject to rapid change. This article is for informational purposes only and does not constitute investment advice.