COMMODITIES TRENDS: MCX June crude futures could trade within the range of 5,890 to 6,565
MUMBAI, 16 JUNE:
Crude oil prices Friday initially soared by +11% after news that Israel launched a major military strike on Iran, although prices then settled back and closed the day up over 6.00%. The oil markets are concerned Iran may attempt to disrupt oil flows from the Persian Gulf. Approximately 20% of the world’s oil consumption passes through the Strait of Hormuz, located at the eastern outlet of the Persian Gulf.
The situation turned worse mid-day Friday when Iran launched dozens of ballistic missiles into Israel, which gave Israel a pretext to launch another round of military strikes into Iran. International crude prices gained on Monday morning in Asian trading amid heightening fears that escalating tensions could disrupt crude supplies from the Middle East.
The MCX June crude futures could trade within the range of 5,890 to 6,565.
NYMEX gas prices on Friday closed higher on carry-over support from a surge in European natural gas prices that was prompted by Israel’s military attack on Iran. There is concern that any attempt by Iran to close the Strait of Hormuz could disrupt LNG shipments through that Strait, which account for about 20% of global LNG trade. Prices also saw support from forecasts for hotter temperatures to move across the US. NYMEX gas futures started higher this early Monday morning in Asian trading after Israel launched strikes against Iran, raising worries the conflict could disrupt Middle Eastern oil and gas supplies.
The MCX June NG futures could trade within the range of 300 to 314.
GOLD SILVER: The range for MCX August gold is 99,005 to 1,01,400, while that for MCX July silver is 1,05,200 to 1,07,650.
Gold traded higher on safe-haven demand after Thursday night’s Israeli military attack on Iran. Gold also had underlying support from tariff uncertainty after President Trump indicated on Wednesday that he is moving ahead with his reciprocal tariffs. Gold prices were undercut by a mildly higher dollar. Meanwhile, silver prices were undercut by concern that the upward spike in oil prices from Israel’s attack on Iran will undercut global economic growth and industrial metals demand. International and domestic gold and silver prices started higher on Monday morning in Asian trading as an escalating conflict between Israel and Iran drove investors toward haven assets. The sudden upsurge of geopolitical risk has added more impetus to a rally that’s primarily been driven by the threat to global economic growth from President Donald Trump’s aggressive tariff agenda. Markets are now looking ahead to the US Federal Reserve’s policy meeting later this week. The Fed is widely anticipated to keep interest rates unchanged; investor focus will be on any forward guidance regarding the timing and scope of future rate cuts. Domestic gold and silver futures are also expected to rise this Monday morning trade supported by escalating tensions in the Middle East.
The range for MCX August gold is 99,005 to 1,01,400, while that for MCX July silver is 1,05,200 to 1,07,650.
The range for the MCX June copper is between 864 to 884.
International copper ended weaker on Friday’s trade on Friday and were on track to end the week lower, as heightened geopolitical tensions and mounting economic uncertainty triggered a broad risk-off shift in global markets. The decline followed Israel’s pre-emptive strike on Iran, targeting its nuclear facilities and prompting immediate retaliation from Tehran via drone attacks. The rapid escalation raised fears of a prolonged conflict in the Middle East, weighing heavily on investor sentiment. Adding to the bearish tone, US President Donald Trump renewed threats of unilateral tariffs to pressure trade partners, further clouding the global demand outlook. Meanwhile, concerns over weakening demand from top consumer China continued to mount. Most other metals also ended weaker on Friday. LME and COMEX copper started flat to weaker on Monday morning in Asian trading. Prices are likely to stay range-bound in the near term. Softer-than-expected U.S. inflation data for May suggests that the impact of tariffs on consumer prices has yet to materialize. Investors are focusing on the Fed’s interest rate decision this week. While the current rate path is largely priced in, the Fed’s post-decision statement could still influence prices.
The range for the MCX June copper is between 864 to 884.
Most other metals on MCX started with small gains this Monday morning trade, tracking firm overseas prices. Domestically, the range for MCX aluminium June is 237 to 247, while that for MCX zinc June is 246 to 256, and that for MCX lead June is 178 to 181.
(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)
(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)
