Daily Commodity Report for 24 Apr 2025: Indian & US Markets

GLOBAL MARKET ROUND UP

Gold plunged 2.7% on Wednesday, the most since November. The drop in gold prices was attributed to a shift in the stance of US President Donald Trump on the trade dispute with Beijing, which reduced demand for haven assets.

Furthermore, the recovery of the US dollar also put pressure on precious metals. The dollar index rebounded after President Donald Trump backed away from threats to fire Federal Reserve Chair Jerome Powell and his administration opened the door to a softer stance on China tariffs.

Crude oil reversed its earlier gain and settled sharply lower on Wednesday as it was weighed down by increased fear of higher supply. OPEC+ members may seek another supply hike for June, which could exacerbate a global oil surplus and worsen the bearish outlook, with a video conference scheduled for May 5 to decide on the next step.

Kazakhstan’s Energy Minister rejected pressure to cut output, prioritizing national interests over OPEC+ obligations, leading to fears of an escalating price war.

Natural gas closed with a modest gain on Wednesday, on the back of a short covering rally. Traders are now awaiting today’s weekly storage report, which may provide more clarity on the macro front and further direction to the natural gas prices.

Copper prices consolidated in the upper end range as traders weighed an apparent softening of the Trump administration’s stance on trade. Price found support after indications from the US that it may cut tariffs targeting the auto industry.