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Commodity markets witnessed sharp volatility on Monday, April 13, as crude oil prices surged more than 8%, while gold and silver came under pressure. The sudden spike in oil prices has been linked to rising geopolitical tensions, particularly around the Strait of Hormuz, impacting global supply expectations.

Here’s a detailed breakdown of what’s happening in the commodities market and where investors may find opportunities.

Gold and Silver Prices Slip in India

Gold and silver prices declined in the domestic market, reflecting weakness in global bullion trends and a stronger US dollar.

Latest MCX Prices:

• Gold (June futures): Opened at ₹1,51,547 per 10 grams, down ₹1,105
• Silver (May futures): Opened at ₹2,38,362 per kg, down ₹4,912

By mid-morning trading:

• Gold was trading around ₹1,51,586, down ~0.70%
• Silver dropped to ₹2,37,896, falling ~2.21%

The decline is largely due to reduced expectations of US Federal Reserve rate cuts and rising inflation concerns triggered by higher crude oil prices.

Why Are Gold Prices Falling?

Several global factors are putting pressure on gold:

• Strengthening US dollar making gold expensive
• Rising crude oil prices increasing inflation concerns
• Reduced chances of interest rate cuts by central banks

Since gold is a non-yielding asset, higher interest rate expectations tend to weaken its demand.

Crude Oil Jumps Over 8%: What’s Driving the Surge?

Crude oil prices saw a sharp rally due to geopolitical tensions in the Middle East.

Key Developments:

• Disruptions near the Strait of Hormuz
• Concerns over restricted oil exports from Iran
• No diplomatic resolution between major global players

Global Oil Prices:

• Brent crude surged to $101.91 per barrel (+7.05%)
• WTI crude rose to $104.16 per barrel (+7.86%)

On the Indian market (MCX):

• Crude oil prices climbed करीब 7.4% to ₹9,830 per barrel

This sharp rise has increased inflation fears globally.

Other Commodities Performance

Not all commodities followed the same trend.

• Copper (April futures): Slightly down ~0.48%
• Natural Gas (April futures): Up ~0.88%
• Some industrial commodities showed mixed movement

This indicates selective opportunities for traders despite overall volatility.

Where Are the Profit Opportunities?

Market experts suggest that while gold and silver may remain under pressure, other commodities could offer better short-term gains.

Expert Picks:

• Natural Gas: Buy near ₹245, target ₹255, stop loss ₹241
• Copper: Buy near ₹1211, target ₹1188–1220 range (as per strategy)

These recommendations are based on current market momentum and demand outlook.

Market Outlook

The commodity market is currently being driven by global geopolitical tensions and macroeconomic factors. If crude oil continues to rise, inflation concerns may persist, keeping pressure on precious metals like gold and silver.

At the same time, sectors like energy and industrial metals may present trading opportunities.

Final Takeaway

While gold and silver prices have softened, the sharp rally in crude oil has reshaped the commodity landscape. Investors should remain cautious and focus on diversified strategies.

Tracking global developments and market signals will be key to identifying profitable opportunities in this volatile phase.

Disclaimer: Investment decisions should be made after consulting certified financial advisors. Market conditions can change rapidly.

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