WTI crude advanced by 1.59%, and Brent crude gained 1.26%.
Natural gas futures traded with increases.METALS:
Gold futures increased by 0.3% to $1,731.80.
Silver slipped by 0.4% at $23.34 per ounce
Copper added 0.6% at $9,428 a tonne, supported by a possible strike at a copper mine in Chile.AGRICULTURAL:
Corn prices contracted while soybeans registered gains.
Crude oil is traded today with increases in its values in the international markets of New York and London.
WTI crude advanced by 1.59% this morning and was trading at $67.54 a barrel in contracts for September delivery.
Meanwhile, Brent crude gained 1.26%, and a barrel traded at $69.91 in contracts for October delivery.
According to OPEC report, its crude oil basket closed yesterday at $70.66 a barrel, compared to last Friday’s close at $71.30, representing a decrease of 0,90%.
Analysts believe that the market is likely to see a bit of a struggle in the future.
Natural gas recovered from yesterday’s decline
Natural gas lost its price yesterday by 2.59% on the Nymex. However, the commodity futures rebounded on August 10 since participants increased their long positions.
Despite subdued global cues, the energy commodity traded in the positive territory after a gap-up start in the afternoon session.
On the MCX, natural gas delivery for August gained 0.13% or Rs 0.40 to Rs 301.40 per mmBtu.
Gas delivery for September rose by 0.07% or Rs 0.20, to Rs 303.00 per mmBtu.
August and September’s contracts traded at Rs 542.62 crore and Rs 42.66 crore, respectively.
MCX iCOMDEX Natural Gas Index increased by 0.04% or 2.10 points to 3,673.72.
Sriram Iyer, an analyst from Reliance Securities, stated that technically, NYMEX Natural Gas could trade in an area between $3.900-$4.100.
Gold steadied after three days of declines
Gold futures increased by 0.3% to $1,731.80. Spot gold price was trading flat at $1,729.80 per ounce.
The expectations generated by the development of vaccines against the coronavirus are pushing down the price of gold. This precious metal accumulated two years of almost unstoppable rise, which pushed it to its all-time high last August.
This month it broke records of more than 2,000 dollars. Since this peak, gold has slumped by 10% in the market with the gradual recovery of confidence.
News regarding the advancement of Covid vaccines prompts investors to sell the yellow metal. The value of this asset has fallen more than 4% from the announcement of the pharmaceutical Pfizer vaccine being effective at 90%.
The anticipation of an economic recovery is another factor that influences the decline in the price of gold, which tends to increase in times of chaos. In addition, its attractiveness is diminished by its low profitability since investors are looking for risky assets.
According to Ole Hansen, a Saxo Bank analyst, there are enough uncertainties in the market to support the precious metal. However, traders are concerned that tapering will start earlier than expected.
Silver slipped by 0.4% at $23.34 per ounce after dropping to an eight-month low on Monday.
Supply concerns boosted the copper price
Worries about supply from the world’s top producer of copper supported copper prices.
Benchmark copper on the LME increased by 0.6% at $9,428 a tonne.
There is a potential for disruptions in the Escondida copper mine in Chile. However, Chinese demand is limited due to slow growth. Moreover, the dollar is gaining strength, curbing optimism for higher prices for the red metal.
The dollar and the rains put pressure on the grain market
The price of soybeans increased by about $7.3 per ton. The United States Department of Agriculture reported a new sale of 104 thousand tons to unknown destinations, in addition to the report of 131 thousand tons on Friday.
Meanwhile, corn slipped by $1.7 to $216.8 due to the dollar strength and the oil decline. The new wave of Covid in the world also limits the uptrend.
Negative pressure hit the market after rains were reported in various regions of the American Midwest over the weekend, bringing much-needed moisture to crops. In addition, operators adjust their positions ahead of the USDA monthly report next Thursday. The agency is expected to cut its production estimates for the US and second-rate corn in Brazil, supporting prices and limiting falls.
According to USDA estimates, a cut in soybean yields is expected, compared to previous estimates.
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