Daily Commodity Report for 09 May 2025: Indian & US Markets

GLOBAL MARKET ROUND UP

Gold futures fell in a volatile trading session on Thursday, driven by the stronger US dollar and a resurgence in risk sentiment. The dollar has regained some stability, with its third week of moderate increases, while US stocks and bitcoin have climbed. This increasing appetite for risk has undermined gold’s safe-haven appeal. Optimism over trade—with US negotiations with China scheduled for the weekend and a deal with the UK announced—has fueled a surge in riskier assets and the US currency.

On the macroeconomic front, data released yesterday showed that the labor market remains strong. Initial unemployment claims for the week ending May 3 rose to 228,000, somewhat lower than the anticipated 230,000 and down from the prior reading of 241,000. This trend is a relief to the Federal Reserve, which decided to leave interest rates steady on Wednesday.

Crude oil prices increased by more than 3.0% in the previous session, fueled by optimism regarding U.S.-China trade talks. Investors are hopeful that advancements in these negotiations will help stabilize global crude oil demand, positively influencing overall market sentiment.

Natural gas futures experienced a slight decline on Thursday, following a weekly storage report that confirmed an anticipated increase in surplus compared to the five-year average. According to the EIA reports, natural gas inventories rose by 104 Bcf last week, reaching a total of 2,145 Bcf, which is 30 Bcf higher than the 2020-2024 average for this week.

Copper rose in Thursday’s trading, driven by optimism surrounding U.S.-China trade talks. Traders are also considering China’s recent stimulus measures, which involve lowering the required reserve ratio and mortgage rates.