Commodity Market: Gold hits seven-month low, crude pares gains

Oil prices slipped one percent in early Asian trade after falling to a three-week low in the previous session

Metals slipped further and hit a low point in both domestic and international markets on October 3 and gold also hit a seven-month low as future contract for December 2023 expiry on Multi Commodity Exchange (MCX) opened lower at Rs 57,426 per 10 gram levels and even touched intraday low of Rs 56,565.

Gold Prices

Gold traded at nearly Rs 56,734 per 10 gm levels on MCX. In the international market, gold quoted around $1,820 per ounce, logging 0.35 percent intraday loss against its previous close. The dollar index hitting a 10-month high and a possible announcement from the US Federal Reserve caused the dip in the prices of the precious metal.

Also Read: Gold languishes at seven-month low on surging dollar, higher US rates

Silver Prices

Silver opened lower at Rs 69,255 per kg and hit an intraday low of Rs 65,666 per kg within few minutes of opening of the commodity market.  The white metal fell as much as 3.90 percent, hitting a one and a half year low.

Other Metals

Copper prices moved around four-month lows, while data provided by the  Energy Information and the S&P show that demand for copper is likely to double by 2035.  Tin hit a five-month low due to slow industry activity in China and fell by six percent. Nickel also traded 11 percent lower, while zinc and aluminium traded 4.5 percent and 5 percent higher, respectively, on the MCX.

Also Read: Oil pares gains ahead of Fed Reserve comments

Crude Oil

Oil prices slipped one percent in early Asian trade on October 3 after falling to a three-week low in the previous session on the back of a stronger dollar, rising US bond yields and mixed supply signals. Brent futures for December delivery declined 92 cents, or 1.01 percent, to $89.79 a barrel.

"(Brent) crude oil prices slid to (around) $90 a barrel as rising US yields and a stronger US dollar dominated market sentiment," ANZ analysts said in a client note.

Higher interest rates along with a stronger dollar also make oil more expensive for holders of other currencies, which could dent oil demand.