1 week ago
Oil, Gold and Silver Futures Rise on Global Signals
Oil prices went up because new US sanctions on Iran raised concerns that less oil could reach the world market.
Traders were also watching the Strait of Hormuz because it was described as an important pressure point.
Indian crude futures gained for the fifth session in a row.
Gold prices also rose as the US dollar became weaker.
Lower US Treasury bond yields made gold more attractive to investors.
Inflation, expensive oil and geopolitical tensions limited gold’s gains.
Silver prices increased as bond yields and the dollar fell.
The US Treasury said it would increase certain bond buybacks to provide more market liquidity.
The silver report gives conflicting units for its quoted Indian price.
MCX crude oil futures rose for a fifth straight session as new US sanctions on Iran revived concerns about supply disruptions.
September crude gained Rs 96, or 1.18%, to Rs 8,247 per barrel, while October crude rose 1.14% to Rs 8,097.
Brent crude for October delivery climbed $1.95, or 2.13%, to $93.57 per barrel.
Gold futures increased Rs 264 to Rs 1.58 lakh per 10 grams as a weaker US dollar and lower Treasury yields supported bullion demand.
Silver futures rose nearly 1% on MCX, although the reports give inconsistent units for the quoted price of Rs 2,38,950.
- Who
- Commodity investors, analysts, the US government, and traders on Indian and international futures markets.
- What
- Crude, gold and silver futures rose as supply, currency, bond-yield and geopolitical factors influenced trading.
- Where
- Trading took place on India’s Multi Commodity Exchange and in international markets including New York and the Intercontinental Exchange.
- When
- The silver move was reported on Thursday; crude and gold were reported during the same market update, but no calendar date was provided.
- Why
- Crude rose on renewed concerns over Iranian supply after US sanctions, while gold and silver benefited from a weaker US dollar and softer US Treasury yields.
Key facts
- September MCX crude
- Rs 8,247 per barrel, up Rs 96 or 1.18%
- October MCX crude
- Rs 8,097 per barrel, up Rs 91 or 1.14%
- Brent crude
- $93.57 per barrel, up $1.95 or 2.13%
- October gold futures
- Rs 1.58 lakh per 10 grams, up Rs 264
- September silver futures
- Rs 2,38,950 was quoted after a rise of Rs 2,163; the report inconsistently labels the unit as both per kilogram and per 10 grams
- International gold
- December Comex gold traded flat at $4,546 per ounce
- International silver
- September Comex silver rose 1.58% to $66.86 per ounce
- US Treasury buybacks
- Longer-dated bond buyback operations will double to $4 billion from $2 billion per operation starting September 9
Quotes
Manav Modi
Commodities Analyst at Motilal Oswal Financial Services Ltd
“Gold is hovering above $4,500 for the first time since early June as a sharp decline in US Treasury yields and the dollar boosted bullion”
thehansindia.com
Sources
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