Commodity Market Update

Advisory Bazaar Info Services

• International Market: The US Dollar Index fell below 98.5 for the third consecutive session due to US-China trade tensions and a potential US government shutdown. Expectations of a Federal Reserve interest rate cut further weakened the dollar.

• Indian Rupee: The rupee strengthened by 0.8% against the US dollar on Wednesday, closing at 88.0750, and is likely to open in the 87.60–87.70 range on Thursday. RBI intervention and comments from US President Trump are expected to provide additional support to the rupee.

• Gold: Due to geopolitical uncertainties and a weaker dollar, spot gold traded at $4,224.79/oz, while US December gold futures were at $4,239.70/oz. Gold in Indian domestic markets has risen 61% this year. The upcoming Fed meeting is expected to see a 25-basis-point rate cut.

• Copper: Shanghai Copper traded at 85,250 CNY/ton (+0.34%), while LME Copper was at $10,638.5/ton (-0.02%). Concerns remain over supply risks and declining TC/RC charges, while investors closely watch US-China trade tensions.

• Iron Ore/Steel: Dalian Iron Ore January contract fell to 774 CNY/ton (-0.83%). Despite the Fed’s expected rate cut, rising stock levels and weak economic data continue to weigh on prices.

Summary: Dollar weakness, expectations of Fed rate cuts, and geopolitical risks supported gold and the rupee. Copper and iron ore continue to be influenced by supply risks and US-China trade tensions.