MCX commodity prices traded mixed on Friday, May 22, with precious metals remaining under pressure while crude oil prices rebounded amid uncertainty surrounding US-Iran peace negotiations and Strait of Hormuz supply concerns.
MCX Gold June futures fell below the Rs 1.60 lakh per 10 grams mark and were trading at Rs 1,59,183, down Rs 423 or 0.27%.
MCX Silver July futures declined Rs 1,269 to Rs 2,73,614 per kg, down 0.46%, although international silver prices continued to hold above $76 an ounce.
Silver prices remained volatile as markets tracked developments around the US-Iran negotiations. Tehran reportedly stated that the latest US proposal had narrowed differences between the two nations. However, disagreements over Iran’s enriched uranium stockpile and control over shipping routes through the Strait of Hormuz continued to keep investors cautious.
Despite Friday’s stability, silver prices globally remain nearly 20% lower since the conflict began due to concerns that energy-driven inflation could force central banks to maintain tighter monetary policies.
Meanwhile, MCX Crude Oil futures traded higher at Rs 9,404 per barrel, up Rs 62 or 0.66%, tracking gains in international oil benchmarks.
Brent crude futures climbed over 2% to around $104.96 per barrel, while WTI crude traded near $98.08, as traders doubted the prospects of a breakthrough in US-Iran peace talks. Markets also remained worried about ongoing disruptions through the Strait of Hormuz, through which nearly 20% of global energy supplies previously transited.
MCX Copper futures traded at Rs 1,347.80, up 0.20%, while Zinc futures gained 0.52% to Rs 369.35 per kg. Aluminium futures also edged higher by 0.31% to Rs 387.95.
On the other hand, MCX Natural Gas futures slipped 0.45% to Rs 288.8 amid elevated US gas storage levels and weaker LNG export activity. US natural gas prices fell below $3 per MMBtu after the EIA reported a larger-than-expected storage build of 101 bcf for the week ended May 15.
Commodity markets are likely to remain volatile as investors continue tracking geopolitical developments, inflation risks, oil supply disruptions and global central bank rate expectations.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Commodity and stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.