The US dollar sparked to a new 10-month high yesterday, which added pressure on Bullions and energy prices in the commodity market today.   Silver fell to around $21.5 per ounce, the lowest in over one and half years, pressured by the interest rate jitters after hawkish Fed pause and concerns about industrial demand after weak manufacturing PMIs for China and Europe.  Crude oil plunged in the commodity market today as worries that the Fed will leave rates higher for longer lifted the dollar and hampered the outlook on energy demand. Still, tight supplies pinned Brent futures 31% higher since this year’s low in June, as OPEC is expected to maintain previously announced output cuts. Earlier in September, Saudi Arabia and Russia announced they would extend the combined 1.3 million barrels-a-day output cuts until the end of the year. The dollar index which measures the currency against six major counterparts rose 0.65% at 106.859 (At 11.50pm). MCX Gold future settled at 57600, up 0.83%. Silver at 69857 down 1.05%. Copper prices settled at 722.45 up 0.38%.  Crude oil settled at 7542 down 1.06%. Natural gas settled at 245.92 up 0.49%. Commodity Market Today | Economic Data & Events Scheduled Australia ... Read more

The dollar strengthens against its major counterparts at the start of the week in the Commodity Market Today. The currency jumped towards its highest levels since November 2022, as speculation that central banks would maintain high interest rates to curb inflation spared demand for the safe haven. A surge in the yield on the U.S. Treasury 10-year note by nine basis points marked a high of 4.53%, a level unseen since 2007, also weighed on the sentiment. Crude oil prices retreated from the day’s high amid a lack of buying interest after last week’s loss triggered by concerns that the Federal Reserve could turn excessively hawkish with U.S. interest rates in the Commodity Market Today. Bullions and base metals remained in pressure following the strong dollar. Meanwhile, China’s property developers are facing new signs of distress, underscored by China Evergrande Group’s decision to cancel a creditor meeting, and increased fears about its debt burden. This exacerbates concerns that global growth may decelerate as China’s economy struggles. The dollar index which measures the currency against six major counterparts, was up 0.39% at 105.993. MCX Gold future settled at 58701 down 0.42%. Silver at 724150 down 1.62%. Copper prices settled at 713.90 ... Read more

China, the world’s second-largest economy, holds significant influence over the global commodity market. Often referred to as the “China Effect,” the country’s rapid growth, industrialization, and insatiable demand for commodities have reshaped the dynamics of this market. In this blog, we will explore the profound impact of the “China Effect” on the commodity market and its implications for various sectors worldwide. The Rise of China: China’s economic transformation over the past few decades has been remarkable. As the country embraced market reforms, it experienced unprecedented industrialization, urbanization, and infrastructure development. This surge in economic growth fueled China’s appetite for commodities, making it a major player in global trade. Commodity Demand: China’s voracious demand for commodities stems from its need to support its infrastructure projects, construction boom, and manufacturing sector. Key commodities such as crude oil, iron ore, copper, coal, and agricultural products have witnessed substantial growth in demand as China’s industrial base expanded. Price Volatility: The sheer size of China’s commodity consumption has led to significant price volatility in global markets. Fluctuations in Chinese demand, driven by factors like government policies, economic indicators, and geopolitical events, have a profound impact on commodity prices. Investors and market participants closely monitor China’s ... Read more