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The commodity market today closed on a decidedly mixed note, leaning significantly weak, as massive selling pressure in the precious metals sector negated strong gains registered across energy and base metals.
The overall sentiment was bearish, driven almost entirely by the poor performance of bullion. According to MCX data, the benchmark MCX iCOMDEX Composite index registered a sharp decline of -1.37%, weighed down by heavy losses in safe-haven assets.
This weakness was clearly defined by the slump in the MCX iCOMDEX Bullion index, which plummeted by -2.35%.
Conversely, indicators of industrial activity remained firm, with the MCX iCOMDEX Energy index gaining 0.72% and the MCX iCOMDEX Base Metal index advancing robustly by 0.76%.
This divergence suggests strong fundamental demand for industrial inputs, even as global factors likely prompted investors to exit non-yielding assets like gold price and silver rate.
Bullion Faces Steep Correction:
The most dramatic movement of the day was witnessed in the precious complex, which registered substantial losses across the board. Silver bore the brunt of the selling, making it the top loser among major commodities.
According to MCX figures of Commodity market today , the December contract for Silver declined sharply by -2.94%. The associated contracts, Silver Mini and Silver Micro, also saw major dips, shedding -2.78% each. This intense selling pressure caused the MCX iCOMDEX Silver index to fall by -2.92%.
Similarly, gold price suffered a severe correction. The Gold December contract dropped by -2.21%, while the Gold Mini contract was down by -2.15%. The collective weakness pushed the MCX iCOMDEX Gold index lower by -2.15%, while the broader MCXBULLDEX also closed lower by -2.34%.
Such widespread declines in bullion typically suggest a shift in the outlook for international markets, often correlated with rising bond yields or a stronger US Dollar, making gold and silver less attractive hedges.
Energy and Base Metals See Strong Rally
Commodity market today stark contrast to the woes of bullion as both the energy and base metals sectors displayed notable strength. Leading the charge in energy prices was Natural Gas, which was the day’s top gainer.
The November Natural Gas contract surged by 3.09%, with the Natural Gas Mini contract also gaining 3.01%. This buoyant performance boosted the MCX iCOMDEX Natural Gas index up by 3.36%. Furthermore, crude oil also managed to stay in the green, with the Crude Oil Mini contract closing higher by 0.61%.
Strength was also evident across key base metals, suggesting optimism regarding industrial consumption and supply dynamics. Zinc futures rose significantly, gaining 1.15%, while the Zinc Mini contract followed suit with a 0.90% increase.
Copper also posted solid gains, advancing by 0.88%. Other industrial metals like Aluminium and Lead also closed positively.
Given the pronounced split in performance of Commodity market today —where industrial commodities thrive while safe havens crash—analysts suggest investors are currently favouring growth-oriented assets over defensive plays.
While the strength in natural gas and base metals confirms positive demand indicators, the deep correction in the gold price and silver rate warrants caution. Should the global economic outlook improve, base metals and energy may sustain their momentum;
however, bullion needs a reversal in macroeconomic trends, such as renewed geopolitical uncertainty or dovish central bank signals, to recover its lost lustre.
Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. We are not registered financial advisors. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.
