MCX Holds 24% Equity in CDSL, Amid Oil and Gold Market Developments

MCX, the leading commodity exchange platform, currently holds a substantial 24% equity stake in the repository established by Central Depository Services Limited (CDSL) in Mumbai, showcasing an ongoing commitment to market infrastructure developments.

In other news, developments in the oil market have driven prices down by 1% to $82.33, with hopes for a Gaza ceasefire and Hurricane Beryl‘s impact alleviating supply disruption concerns. Recent spikes in prices were attributed to increased demand for Brent crude and reduced summer stockpiles, following a notable 6% drop in US drilling rig counts over the past 10 weeks signaling a shift in activity.

Looking at the technical viewpoint, MCX Crude Oil July futures are currently within a symmetrical triangle pattern, facing resistance at the upper band amidst a bearish sentiment. Factors like the emergence of a bearish candlestick pattern and negative RSI divergence indicate underlying weakness in the market.

On the gold front, the precious metal traded steadily amid a weaker US Dollar and profit booking, supported by expectations of a Fed rate cut following soft US employment data. Political uncertainties in France and tensions in the Middle East have further positioned gold as a safe-haven asset, despite a momentary dip linked to China’s People’s Bank of China pausing Gold purchases for a second consecutive month. Attention now turns to Fed Chair Powell’s testimony and US CPI data to be released later this week.

Assessing the technical landscape, MCX Gold August futures witnessed a breakout from a symmetrical triangle pattern but failed to sustain it, leading to a pullback. Currently trading near the breakout level, maintaining positions above 72,600 could indicate a bullish trend, supported by trading above the 21 EMA. Key resistances are seen at 73,068 and 73,400, with supports at 72,072 and 71,600.

Traders are advised to consider the technical analyses provided by experts like Neha Qureshi, a Senior Manager for Technical Research Analyst at Anand Rathi, for potential trading strategies in the current market scenario. The overall outlook for the commodity market remains mixed, influenced by international developments, central bank actions, and global economic trends.