India's commodity markets saw sharp activity in the metals and bullion pack on Tuesday. While Aluminium, Nickel, and Silver (for December delivery) futures were in high demand, rubber, cotton, and zinc were under selling pressure. Among precious metals, gold and silver gained 0.14 and 0.83 percent, respectively. And in the oil market, crude prices gained fell by 0.18 percent.
Here are key highlights of today's trade and more:
Gold rose to Rs 47,230 mark and Silver traded above Rs 63,500 in line with global trends. Globally, spot gold and silver rates were also seen trading higher at $1817.70 and $24.195 per ounce, respectively.
"Spot gold continues to hover above the 1800 level as the US Federal Reserve kept the interest rates low and didn’t announce any timeline on withdrawing the economic support which boosted appeal for the bullion metals," Prathamesh Mallya of Angel Broking said.
The yellow metal was further supported as a slowdown in China’s economy, mounting geopolitical tension, and the recent outbreaks of the new variant of COVID-19 virus continued to hamper market sentiments, he added.
But rising oil prices following the potential shortage concerns kept the gains for Gold in check. Oil prices rose over half a percent Tuesday.
Oil prices extended gains from the earlier session as potential shortage worries coupled with a softer Dollar underpinned the prices, Mallya said. Brent crude oil is trading at $73.03 and the US oil is trading at $68.86.
However, he believes mounting pandemic worries and low demand from the oil refineries in the Gulf of Mexico might continue to weigh on the market sentiments.
In the forex market, the dollar index -- which gauges the greenback against six currencies -- was last down 0.15 percent. The rupee continued trading lower Tuesday and quoted at 73.049.
"Investors will keep a keen eye on the US employment figures for August’21 for cues on the labour market recovery and FED’s stance in the months ahead," Mallya said.
(Edited by : Yashi Gupta)
