Morning Commodity Market Snapshot

GOLD

COMEX gold prices traded with negative bias for the second consecutive trading session and is currently hovering at the level of $4071, amid renewed tension between US-Iran, pushing crude oil prices higher , bringing back the inflationary pressure back in the market. Further confusion over Strait of Hormuz, is also weighing heavily on gold prices, with the US declining Iran’s statement of water ways to remain closed until further notice. However, on the technical front, if gold prices manage to sustain above the key level of $4021, then prices can remain strong and may head towards $4100. Only fall below #4020, would make gold prices weaker.

SILVER

COMEX silver prices continued to slide and are trading at the level of $58.22, amid middle east tension with Iran striking the military base of US at the middle east countries including, Kuwait, Bahrain. Further strength in crude oil prices amid renewed tension in Strait of Hormuz also weighed on silver prices. Thus falling below $55 in the silver prices can make the prices weaker towards the level of $ 52. But if prices sustains above %55, then it may again reach $60.

CRUDE

Driven by escalating Middle East conflicts near the critical Strait of Hormuz, Brent Crude prices surged 3.82% today to reach $78.85 per barrel. This sudden spike follows the United States launching its fourth retaliatory military strike in a single week against Iranian targets, which came in response to Iran attacking a Cyprus-flagged container ship. The rapid escalation has severely damaged prospects for diplomatic talks, as Tehran insists that Washington must honor prior commitments regarding both safe transit through the Strait and the normalization of Iranian oil exports before any negotiations can resume. Consequently, if tensions between the US and Iran fail to ease quickly, crude oil prices are expected to continue their upward trajectory and break past the $80 threshold.

Copper

MCX copper prices are seen trading near above the level of Rs1290, closing the day at Rs1293, amid fall in probability of hike in interest rate along with the report of US-Iran to continue their peace talk.  However, with renewed tension between US-Iran, may put pressure on copper prices, and fall below Rs1290, can take the prices towards the level of Rs1280.

Commodity Levels:

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