Commodity market: Today trading in gold in a small range, cotton prices at the highest level since 2011

Gold is being traded in a small range today. The recovery in the dollar has put pressure on the upside. However, the discount in the domestic market is at an 8-and-a-half-month high due to lower spot demand. After all, how long this discount will be seen and will focus on it. With this, the process of unlocking has started in Maharashtra and many parts of the country.

gold in short range

Gold is visible in a small range. The recovery in the dollar has put pressure on it at higher levels. However, weakness in US bond yields is supporting. Weaker employment data than expected from the US is also supporting. Discount in India is at an all time high of 8 and a half months. Speculative long position on Comex is showing an edge. Gold ETF holding is at 1043 tonnes.

weakness in silver

Silver is near the level of Rs 71,200 on MCX. Silver weakens on dollar’s recovery.

weakness in crude

Brent prices have slipped from 2-year highs. Brent has slipped after crossing $72 in intraday. Crude has gained about 40% this year.
The market is eyeing the Iran-US nuclear deal. Expectations of better demand are supporting the prices.

weakness in metals

Weakness in metals due to strength in dollar. The pressure has come from weaker-than-expected US employment data. Copper smelting continues to grow. There is a decrease in aluminum production and an increase in consumption. Strong demand for nickel is coming from the steel, new energy sector. Zinc production has come down to 10,400 tonnes in May.

There is a strong rise in the prices of cotton today. Cotton on MCX has gone above 24000 which is the all-time record level on the exchange. The impact of better domestic demand, slow arrivals and uptick in foreign markets is being seen on cotton. Joining us is Rakesh Rathi, former President of the Indian Cotton Association

cotton boom

Cotton prices are at their highest level since 2011. Cotton prices have risen by about 18% this year. Cotton prices on MCX have gone above Rs 24,000. The rally was driven by strong demand from mills and exporters. Lower supply in the domestic market is supporting the prices. Rapid increase in prices in foreign markets.

On the other hand, after knocking for a while, the monsoon is now seen to be gaining momentum. After Tamil Nadu, Telangana, Monsoon has now knocked over parts of Maharashtra and Andhra Pradesh. According to the Meteorological Department, the monsoon has covered about 30 percent of Maharashtra and it will knock in Mumbai in 2-3 days. By June 11, a low pressure area is likely to form in the Bay of Bengal, which will give a further boost to the monsoon.

At the same time, there has been a reshuffle in the top management of the country’s second largest commodity exchange NCDEX. The new MD and CEO of the exchange, Arun Raste, has taken over from today. Earlier Arun Raste was the Executive Director of NDDB. He has over 30 years of experience in the Banking, Financial and Social Sectors. Arun Raste has worked in organizations like IDFC First Bank, Kotak Mahindra Bank, NABARD, ACC Cement.

Investment advice by Kunal Shah of Nirmal Bang Commodities

Sell copper 740 tgt 744.9 0 tgt 732

Sell ​​July jeera 14300 tgt 13880 sl 14459

Investment advice by Jatin Trivedi of LKP Securities


CRUDE JUN AT 5025 SL 4970 TARGET 5085

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