Commodities Market Today 24 April

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Synopsis:

Today's commodities market demonstrates contrasting moves as US 10-year treasury yields dropped by 1.9 basis points to 4.605%, Dollar Index eases slightly at 105.48 levels, gold continues its decline to reach $2,321.57 per ounce, and brent crude prices inflate by 1.63% to reach $88.42 per barrel.

Top News and Events

  • US business activity data pressurise Treasury Yields: Treasury yields decreased as recent data revealed a slowdown in U.S. business activity, hitting a four-month low. Specifically, the yield on the key U.S. 10-year notes dropped by 1.9 basis points to 4.605% from its previous level of 4.623% recorded late on Monday.

  • Dollar Index settles slightly below the recent highs: Yesterday, the dollar index closed at 105.48, slightly easing from its recent peak. However,  it is still well-supported. Investors believe the Federal Reserve won't cut interest rates soon, buoyed by rising Treasury yields reaching their highest levels since November.

  • Yellow metal continues decline: Gold prices continued to decline, with spot gold dropping by 0.2% to $2,321.57 per ounce, while U.S. gold futures settled 0.2% lower at $2,342.10.

  • Oil prices inflate as all eyes remain on Middle East tensions: Brent crude futures increased by 1.63% to reach $88.42 per barrel, while U.S. crude settled up by 1.78% at $83.36. Investors kept a close eye on the Middle East, causing oil prices to climb.

Additional Read: Commodities Market Today

Prices of Popular Commodities

The day’s rate of Gold, Silver, Natural Gas, Crude Oil (Brent), Crude Oil (WTI)

 

Name

LTP

Change

Change%

GOLD

₹71,106.00

77.00

0.11

SILVER

₹6,950.00

+119.00

+1.74

COPPER

₹79,659.00

-1935.00

-2.37

CRUDE OIL

₹151.10

+1.70

+1.14

NATURAL GAS

₹837.50

-15.50

-1.82

Additional Read: Share Market News

Note: Stats/Prices updated as on April 24, 2024 at 9:38 AM 

Source: Moneycontrol

 

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Frequently Asked Questions

What are the potential risks associated with commodities trading?

Answer Field

Risks include price volatility, leverage risk, liquidity risk, regulatory risk, geopolitical risk, and risks specific to individual commodities such as weather-related risks for agricultural commodities or geopolitical tensions for energy commodities.

Are there any specific regulations governing commodities trading?

Answer Field

Yes, commodities trading is subject to regulations imposed by regulatory authorities such as the Commodities Futures Trading Commission (CFTC) in the United States and similar bodies in other jurisdictions. These regulations aim to ensure fair and transparent trading practices.

How can I manage risk when trading commodities?

Answer Field

Implement risk management techniques such as setting stop-loss orders, diversifying your portfolio, avoiding over-leveraging, and staying informed about market developments and news that may impact commodity prices.

What are some common trading strategies in commodities markets

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Popular strategies include trend following, range trading, spread trading, and fundamental analysis-based approaches. Each strategy has its own set of rules and techniques suited to different market conditions.

What is leverage in commodities trading, and how does it work?

Answer Field

Leverage allows traders to control a larger position with a smaller amount of capital, amplifying both potential profits and losses. While leverage can magnify returns, it also increases risk, so it's crucial to use it judiciously.

How do I choose which commodities to trade?

Answer Field

Consider factors such as market trends, supply-demand dynamics, geopolitical developments, and your risk tolerance when selecting commodities to trade. Conduct thorough research and analysis to identify opportunities.

Can I trade commodities without owning the physical assets?

Answer Field

Yes, through derivatives such as futures contracts and options, traders can speculate on commodity price movements without owning the physical assets, enabling participation in commodities markets with lower capital requirements.

What are the main benefits of commodities trading?

Answer Field

Commodities trading offers portfolio diversification, a hedge against inflation, potential for profit from price fluctuations, and exposure to global demand trends.

How does commodities trading differ from stock trading?

Answer Field

While stock trading involves buying and selling shares of publicly traded companies, commodities trading deals with the exchange of physical goods or raw materials. Additionally, commodities are often subject to supply and demand dynamics rather than company performance.

What exactly are commodities?

Answer Field

Commodities are raw materials or primary agricultural products traded on dedicated exchanges. They can be categorised as hard commodities (e.g., gold, oil) or soft commodities (e.g., coffee, cotton).

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