The Nifty closed at 22434.65, up by 0.36% today. Throughout the day, the Nifty reached a high of 22619.0 and a low of 22303.8. Meanwhile, the Sensex traded between 74501.73 and 73485.12, closing 0.47% higher at 73876.82, which was 350.81 points above the opening price.

In comparison to the Nifty 50, the Nifty Midcap 50 underperformed and closed 0.11% lower. However, the Nifty small cap 100 outperformed and ended at 16146.4, up by 72.95 points or 0.45% higher.

Looking at the historical performance of the Nifty 50, it has provided the following returns:

– In the last 1 week: 0.81%

– In the last 1 month: 0.45%

– In the last 3 months: 3.92%

– In the last 6 months: 15.8%

– In the last 1 year: 28.19%

The top gainers in the Nifty index today were HDFC Bank (up 3.06%), Eicher Motors (up 2.04%), Tech Mahindra (up 1.92%), Titan Company (up 1.89%), and Asian Paints (up 1.71%). On the other hand, the top losers in the Nifty index were Oil & Natural Gas Corporation (down 2.31%), Shriram Finance (down 2.24%), Adani Ports & Special Economic Zone (down 2.17%), Bharat Petroleum Corporation (down 2.04%), and Bharti Airtel (down 1.54%).

The Bank Nifty ended at 47624.25, with an intraday high of 48254.65 and a low of 47712.7. The performance of the Bank Nifty in different time frames is as follows:

– In the last 1 week: 1.97%

– In the last 1 month: 1.25%

– In the last 3 months: -0.3%

– In the last 6 months: 9.3%

– In the last 1 year: 17.2%

In the trading session on April 4, 2024, the top gainers in the Sensex were HDFC Bank (up 3.06%), Titan Company (up 1.98%), Tech Mahindra (up 1.74%), Asian Paints (up 1.72%), and Tata Consultancy Services (up 1.41%). The top losers in the Sensex were State Bank Of India (down 1.52%), Bharti Airtel (down 1.44%), Power Grid Corporation Of India (down 0.96%), ITC (down 0.60%), and Reliance Industries (down 0.54%).

In the Nifty MidCap 50, the top gainers were Bandhan Bank, UPL, Coforge, Au Small Finance Bank, and Indus Towers. The top losers were Hindustan Petroleum Corporation, Tube Investments Of India, Petronet LNG, P I Industries, and Yes Bank.

In the Nifty Small Cap 100, the top gainers were CESC, Ujjivan Small Finance Bank, KEC International, PNB Housing Finance, and Cyient. The top losers were Angel One, Redington India, Indiamart Intermesh, Swan Energy, and RITES.

In the BSE, the top gainers were Aster DM Healthcare (up 9.66%), Gujarat Ambuja Exports (up 7.14%), Balaji Amines (up 6.93%), CESC (up 6.71%), and Indiabulls Real Estate (up 5.86%). The top losers were Capri Global Capital (down 7.08%), Dabur India (down 4.77%), Angel One (down 4.73%), Ajanta Pharmaceuticals (down 3.96%), and JM Financial (down 3.83%).

In the NSE, the top gainers were Jubilant Pharmova (up 9.92%), Aster DM Healthcare (up 9.75%), Balaji Amines (up 7.07%), Gujarat Ambuja Exports (up 7.03%), and CESC (up 6.66%). The top losers were Capri Global Capital (down 7.15%), Angel One (down 4.77%), Dabur India (down 4.70%), JM Financial (down 3.82%), and Ajanta Pharmaceuticals (down 3.81%).

For more information on the top gainers and losers in the BSE and NSE, please visit the provided links.

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ChiniMandi, Mumbai: 3rd April 2024

Domestic Market

Domestic sugar were reported stable

Domestic sugar prices in major markets were reported to be stable after a mixed session yesterday. However, with a higher monthly quota, they are expected to face continued pressure in the coming days. Furthermore, demand is expected to be weak in the major markets, putting pressure on prices.

In Muzaffarnagar, M-grade sugar costs between Rs 3,770 and Rs 3,800 per quintal, while S-grade sugar is expected to cost between Rs 3,420 and Rs 3,450. Agrimandi anticipates that the price of S grade sugar in the Kolhapur market will fall to between Rs 3,380 and Rs 3,460 per quintal within the next two weeks.

Ex-mill Sugar Prices as on  April, 3 2024 :

Destination-wise Spot Prices as on April, 3 2024 :

 

International Market

At the time of writing this update London White Sugar #5 front month contract is trading at $654.10 ton, whereas the New York Sugar #11 front month contract is trading at 22.50 c/lb.

Currency, Commodity & Indian Indices

The rupee traded against the US dollar at 83.523 whereas USD was trading with BRL at 5.0739, Crude futures traded at ₹7156, Crude WTI traded at $85.75 barrel. Sensex closed 27.09 points lower at 73876.82 whereas Nifty ended 18.65 points lower at 22434.65

News Round-Up

World Bank projects India’s growth to reach 7.5 per cent in FY 23-24

World Bank projects India’s growth to reach 7.5 per cent in FY 23-24

Season 2023-24: 151 sugar mills end sugarcane crushing operations

Season 2023-24: 151 sugar mills end sugarcane crushing operations

Pakistan Sugar Mills Association requests govt to create ‘permanent’ window of sugar export

Pakistan Sugar Mills Association requests govt to create ‘permanent’ window of sugar export

Back in 2022, two insurance majors said they would reduce the amount of business they do with Big Oil. Allianz and Swiss Re both motivated the move with their net-zero efforts that they wanted to extend to their clients if they wanted to continue being their clients.

One would think this could be a pretty effective strategy to get oil companies to become cleaner, but climate activists disagree. For them, what the insurance industry is doing is not enough. So they’re staging protests to force more radical change: a complete drop of oil and gas companies by the insurers.

Euronews called insurance “the Achilles heel of the fossil fuel industry” back in February, citing an Extinction Rebellion activist as the radical climate group staged a week-long push against insurers to stop insuring oil and gas projects.

“If fossil fuel companies have no insurance for their massive projects, the entire financial risk falls on their shoulders, so if something goes wrong, they are liable for whatever happens,” Steve Tooze told Euronews at the time.

It is difficult to argue with the point. Indeed, companies that are solely responsible for the entire financial risk of a project would be a lot more careful in how they handle that project. They would, in fact, be very careful when deciding whether to take on the project at all-which is what the activists are banking on. Related: SLB Announces $8-Billion Deal as Mergers Extend to Oilfield Sector

What is doubtful in this scenario, however, is that the insurance industry would be willing to drop clients that bring it between $1.6 billion and over $2 billion in premium income annually, per the Euronews report. And that’s just insurers on the Lloyd’s of London market. According to British consultancy Insuramore, as cited by Energy Voice, in 2022, total gross premiums from the oil and gas industry were at $21.25 billion.

“The insurance industries have a kind of superpower and they could make it almost impossible for fossil fuels to continue to operate,” Extinction Rebellion’s Steve Tooze said back in February. They probably can. But will they?

“By 2030, Swiss Re’s oil and gas re/insurance portfolios will only contain companies that are aligned with net zero by mid-century. For our treaty business we are developing an oil and gas approach by 2023,” the insurance major said in 2022.

Allianz will “no longer invest in and underwrite new single-site or stand-alone oil and selected gas risks, oil and gas activities related to the Arctic and the Antarctic as well as extra-heavy oil and ultra-deep sea risks,” the other major declared.

Neither company, then, is willing to give up oil and gas entirely, possibly thanks to the premiums that business brings in. There is a simple reason for that. There is no other business that can fully replace those premiums.

On the contrary, insurers are losing money on the business they do with wind and solar companies because of weather-related events and, in the case of offshore wind, what one publication called “engineering deficiencies.” That goes hand in hand with the higher premiums insurers are slapping on EVs because of the huge write-off risk for these vehicles compared to ICE cars.

So, what Extinction Rebellion’s Tooze says about the insurance industry’s superpower may be right, but the threat of reputation damage is unlikely to be enough to make that industry use its superpower to kill oil and gas. Because oil and gas are cash cows in troubled times of mounting losses because of “engineering deficiencies” and hail.

Even so, insurers are caving, whether due to the fear of reputational damage or because they genuinely believe it is immoral to cover oil and gas projects. As many as 28 insurance companies last year declared they would not provide coverage for the Eastern African Crude Oil Pipeline project.

The declaration came after climate activist protests against the infrastructure project that is set to be the biggest one in Africa, and that will transport oil from Uganda to the coast of Tanzania. It was a development that radical activists such as XR should celebrate because, without insurance coverage, the EACOP may never get completed-there are not a lot of insurance companies that can afford to cover such a massive project.

However, the one thing that those calling for insurers to stop doing business with oil and gas seem to forget is the number one rule of markets. Where there’s demand, supply will find a way. The world’s oil demand keeps breaking records even as the transition away from hydrocarbons gathers pace. And this means that producers will find a way to get their projects done despite insurers’ net-zero declarations.

Lending is a case in point. As some banks started reducing their exposure to the oil and gas industry under net-zero pressure, private equity stepped in to fill the void. Insurance is trickier because there is no private equity equivalent in that industry, but then again, insurers would be hard pressed to give up a business that brings in billions every year. They need these billions, too, for payouts for the engineering deficiencies of offshore wind and the hail storm devastation of solar installations.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Oil prices continued their upward trajectory amid investor apprehensions regarding potential disruptions in supply due to escalating geopolitical tensions, on Wednesday. However, some of these concerns were mitigated by an unexpected increase in U.S. crude oil inventories.

Brent crude futures climbed by 84 cents, representing a 0.9% increase, reaching $89.76 per barrel by 11:38 a.m. ET (1538 GMT). Similarly, U.S. West Texas Intermediate futures experienced a gain of 76 cents, or 0.9%, reaching $85.91 per barrel.

Also read: Gold prices continue to rise for fourth straight session, silver surges to two-year high

During the session, both contracts experienced an increase of over one dollar each before the U.S. Energy Information Administration disclosed a 3.2 million barrel rise in crude stocks. Analysts surveyed by Reuters had anticipated a reduction of over 1.5 million barrels, aligning with the preliminary data released by the American Petroleum Institute on Tuesday.

What’s weighing on crude oil prices?

• Brent and WTI futures have surged to their highest levels in over five months, maintaining this momentum for three straight sessions. This rally is driven by apprehensions regarding Ukraine’s recent assaults on Russian refineries, alongside fears of a potential escalation of conflict in the Middle East, both of which could disrupt oil supplies.
• Iran has pledged retaliation against Israel following an assault on Monday that resulted in the death of senior military figures. As a significant supporter of the Hamas militia engaged in conflict with Israel in Gaza, Iran holds the position as the third-largest producer within the Organization of the Petroleum Exporting Countries (OPEC).

Also read: Mentha Oil Rate Today gains 0.11% on Apr 2 2024 3:50PM

• In a note released on Wednesday, Bank of America Global Research revised its 2024 Brent and WTI forecasts upward to $86 and $81 per barrel, citing strengthening demand and increasing political tensions. Meanwhile, during a meeting of the top OPEC ministers on Wednesday, the oil output policy remained unchanged, with pressure exerted on some countries to enhance compliance with output cuts.

(With inputs from Reuters)

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DTN reports:

In slow early trade Wednesday, all three wheat markets moved sharply higher by the closing bell. There was little in the way of fresh news to drive the markets other than some weather concerns. Warm and mostly dry conditions are expected in the U.S. southern Plains and Black Sea wheat areas, including southern Russia. Corn bounced in quiet trade while soybeans, soymeal and bean oil shrugged off early weakness to finish with solid gains.

WHEAT:

Wheat markets rose in unison on Wednesday with not a whole lot of news attributed to the strength. There is some concern over a drier pattern in the U.S. southwest and warmth and dryness in Black Sea wheat regions along with a continued very wet pattern in Europe. However, other than that, it is likely just some short covering from oversold conditions and as funds remain short wheat.

Some of the strength can be attributed to rising world wheat values especially from No. 1 exporter, Russia. FOB values from that country have risen over $10 mt, with Russian FOB now at $209/mt. Ukraine also continues to be a factor in world wheat having managed to ship 14 mmt in the current crop year from July to June. Recent strength in the U.S. Dollar Index, which hit a six-month high Tuesday has been a weight on the wheat market.

On Wednesday, the dollar corrected a bit to the downside. Wheat tender activity saw Jordan pass on its typical 120,000 mt tender amount, while Japan is seeking a combination of 114,000 mt of U.S. Canadian or Aussie wheat, and Tunisia is looking for offers on 50,000 mt of soft wheat. U.S. winter wheat conditions remain far above that of a year ago, but the outlook could turn warmer and much drier in the weeks ahead. In the spring wheat belt, moisture has been plentiful in the past week, but just 1% of spring wheat has been planted so far. Funds remain short a good chunk of both KC and Chicago wheat, with the latter position estimated to be near 90,000 contracts. DTN’s National HRW index closed at $5.17, 46 cents below the May contract.

CORN:

Corn futures moved higher in light trade after the first two days of the week took away much of the grain from last Thursday’s low USDA stocks and acres numbers. Trade was uninspiring and likely just corrective action from early week losses. It is becoming clear that corn traders are unwilling to agree with USDA’s contention that farmers will plant 4.6 million fewer acres than a year ago despite low prices and increased costs. Corn demand remains good, with export sales commitments up 19% from a year ago and inspections running 33% higher. Mexico has pretty much carried U.S. corn exporters with their brisk buying pace, while China is reportedly trying to slow shipments of imported corn to boost prices for farmers ahead of planting.

Domestically, ethanol producers have been going strong, with another stout production of 1.073 million barrels per day produced in the week ending March 29. Ethanol production has been running at a clip that is more than 5% higher than a year ago, with last week’s production a hefty 1.073 million barrels per day. Some pressure continues to weigh on corn from news of bird flu infecting chickens in Texas and Michigan. As a result, the No. 1 egg producer in the U.S. culled 3.6% of its total flock.

In Brazil, weather continues to be favorable in Mato Grosso and central and northern Brazil, while there is some concern in southern Brazil where drought conditions have expanded. Argentina still looks on pace to double last year’s drought-ravaged corn production. The U.S. ag attache in Brazil lowered ideas on Brazil’s corn production to 122 million metric tons (mmt) for 2023-24, while raising 2024-25 anticipated production to 129 mmt. The USDA remains 2 mmt above the attache, while both CONAB and private crop scouts have corn production down near 112 to 113 mmt. On corn tender news, Taiwan’s MFIG bought 65,000 metric tons (mt) of corn from Argentina and Iran is tendering for 120,000 mt of optional corn along with the same amount of soymeal. Corn is likely getting a bit of an energy-related boost from a crude oil market that saw the spot month exceed $86 per barrel as tensions rise in the Middle East. Funds are still long, close to 250,000 contracts of corn still. DTN’s National Corn Index closed at $4.04, and 22 cents under the May contract.

May arabica coffee (KCK24) this morning is up +5.80 (+2.93%), and May ICE robusta coffee (RMK24) is up +165 (+4.50%).

Coffee prices this morning are sharply higher for a second day, with arabica posting a 3-1/2 month high and robusta posting a new record high. Concern that excessive dryness in Vietnam will limit the country’s robusta coffee production is pushing robusta prices sharply higher and providing carryover support to arabica coffee prices. Coffee importer DRWakefield said today that “weather conditions in Vietnam are not encouraging, and there are concerns over a possible water shortage for irrigation, which may hurt the coffee output for next season.”

Arabica coffee prices have carryover support from Monday on concern that recent heavy rain in Brazil’s coffee-growing regions may have damaged coffee crops. Somar Meteorologia reported Monday that Brazil’s Minas Gerais region received 75.4 mm of rainfall in the past week, or 335% of the historical average. Minas Gerais accounts for about 30% of Brazil’s arabica crop.

Tight robusta coffee supplies from Vietnam, the world’s largest producer of robusta coffee beans, are a major bullish price factor. Last Tuesday, Vietnam’s agriculture department projected that Vietnam’s coffee production in the 2023/24 crop year could drop by -20% to 1.472 MMT, the smallest crop in four years, due to drought. Also, the Vietnam Coffee Association said that Vietnam’s 2023/24 coffee exports could drop -20% y/y to 1.336 MM. In addition, Marex Group Plc forecasts a global 2024/25 robusta coffee deficit of -2.7 million bags due to reduced output in Vietnam.

A rebound in Vietnam’s coffee exports is bearish for robusta prices. On Tuesday, Vietnam’s agricultural ministry reported that Vietnam’s Q1 coffee exports rose +8.3% y/y to 599,000 MT.

In a bearish factor, Rabobank on March 14 predicted a coffee surplus of 4.5 million bags for the upcoming 2024-25 marketing year, up sharply from the 500,000 bag surplus projected for 2023-24. On the bullish side, Rabobank reduced its 2023-24 production forecast by 3.9 million bags to 171.1 million bags, mainly because of downward revisions to production estimates for Indonesia and Honduras.

Coffee inventories have rebounded from historically low levels. ICE-monitored robusta coffee inventories on February 21 fell to a record low of 1,958 lots, although they recovered to a 2-1/4 month high of 3,058 lots Tuesday. Also, ICE-monitored arabica coffee inventories fell to a 24-year low of 224,066 bags on November 30, but they recovered to a 10-1/4 month high Tuesday of 604,079 bags.

Larger coffee exports from Brazil are bearish for prices. Cecafe reported recently that Brazil’s Feb arabica coffee exports jumped +36.5% y/y to 2.806 million bags. Brazil is the world’s largest producer of arabica coffee beans. Separately, Brazil exporter group Comexim, on February 1, raised its Brazil 2023/24 coffee export estimate to 44.9 million bags from a previous estimate of 41.5 million bags.

The International Coffee Organization (ICO) recently reported that Jan global coffee exports rose +32.3% y/y to 12.62 million bags, and from Oct-Jan, global coffee exports rose +13.1% y/y to 45.125 million bags.

This year’s El Nino weather event is bullish for coffee prices. An El Nino pattern typically brings heavy rains to Brazil and drought to India, negatively impacting coffee crop production. The El Nino event may bring drought to Vietnam’s coffee areas late this year and in early 2024, according to an official from Vietnam’s Institute of Meteorology, Hydrology, and Climate Change.

In a bearish factor, the International Coffee Organization (ICO) projected on December 5 that 2023/24 global coffee production would climb +5.8% y/y to 178 million bags due to an exceptional off-biennial crop year. ICO also projects global 2023/24 coffee consumption will rise +2.2% y/y to 177 million bags, resulting in a 1 million bag coffee surplus.

The USDA’s Foreign Agriculture Service (FAS), in its biannual report released on December 21, projected that world coffee production in 2023/24 will increase +4.2% y/y to 171.4 million bags, with a +10.7% increase in arabica production to 97.3 million bags, and a -3.3% decline in robusta production to 74.1 million bags. The USDA’s FAS forecasts that 2023/24 ending stocks will fall by -4.0% to 26.5 million bags from 27.6 million bags in 2022-23. The USDA’s FAS projects that Brazil’s 2023/24 arabica production would climb +12.8% y/y to 44.9 mln bags due to higher yields and increased planted acreage. The USDA’s FAS also forecasts that 2023/24 coffee production in Colombia, the world’s second-largest arabica producer, will climb +7.5% y/y to 11.5 mln bags.

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

What is the price of copper per pound?

The price of copper opened today at $4.13 per pound, as of 9 a.m. ET. That’s up 1.04% from the previous day’s copper price per pound and up 6.69% since the beginning of the year.

The lowest trading price within the last day: $4.06 per pound. The highest copper spot price in the last 24 hours: $4.14 per pound.

Copper spot price

The copper spot price is the current price at which physical copper is purchased and sold for immediate delivery, settled on the spot.

Copper spot prices are typically quoted in terms of price per pound or kilogram in U.S. dollars. However, there are alternative ways to quote copper prices.

In some cases, copper may be quoted per metric ton, which is useful for large-scale industrial transactions. This is particularly common in global markets where larger quantities are standard.

Additionally, copper prices may be quoted in some financial markets in currencies besides the U.S. dollar, depending on the region and the specific market’s requirements.

Copper price chart

The chart below shows how the spot price of copper is trending over the year.

Year to date, copper is up 6.69%, as of 9 a.m ET. The 52-week high reached $4.19 per pound on Apr. 14, 2023, and the 52-week low dropped to $3.52 per pound on Oct. 23, 2023.

Spot metal prices

Copper is technically classified as a base metal due to its widespread industrial usage and greater abundance than precious metals. But it is often quoted alongside true precious metals like gold, silver, platinum and palladium.

Despite not being a precious metal in the traditional sense, copper’s importance in electrical wiring, construction and new technologies, such as electric vehicles, lends it a status often akin to that of precious metals.

The spot price of copper fluctuates in real time based on factors such as mining production, global demand, scrap availability, currency exchange rates and inventory levels.

What affects copper prices?

Like many commodities, copper prices are significantly influenced by factors that affect supply and demand in the short and long term.

China is one of the largest consumers of copper, and its economic activities heavily influence global copper prices. The country’s rapid industrialization and urbanization have increased the demand for copper, used extensively in construction and manufacturing. Consequently, any fluctuations in China’s economic growth or industrial policies can substantially impact global copper demand.

The fact that copper is traded primarily in U.S. dollars also plays a crucial role. Currency fluctuations can affect copper prices. When the dollar strengthens, copper becomes more expensive in other currencies, potentially reducing demand. Conversely, a weaker dollar can make copper cheaper for buyers using other currencies, fueling demand.

The ongoing clean energy transition is another significant factor affecting copper prices. Copper is a critical component in the electrification of the economy, including in electric vehicles, renewable energy systems like wind and solar, and the infrastructure needed to support these technologies. As the world moves toward cleaner energy sources, demand for copper could rise.

Finally, miner productivity and government reserves can influence copper prices. Disruptions in copper mining, whether due to strikes, accidents or environmental factors, can lead to supply constraints and higher prices. Similarly, decisions by major copper-producing countries to release or withhold copper from their national reserves can affect global prices.

Copper price history

Copper’s price history, with its notable peaks and valleys, reflects a range of economic and geopolitical events.

The early 2000s saw a steady rise in copper prices, driven largely by demand from China as it underwent rapid industrialization and urbanization. The country’s infrastructure development led to a significant increase in demand for copper.

But this period of high prices was followed by volatility and a decline in the mid-2010s, influenced by a slowdown in China’s economy and a global surplus of the metal.

The COVID-19 pandemic initially caused a drop in copper prices due to decreased demand and disrupted supply chains. But prices rebounded strongly in the second half of 2020 and into 2021.

More recently, the transition to green technology has become a key driver of future copper demand. Copper is essential in electric vehicles, renewable energy systems and other technologies in the shift away from fossil fuels.

Copper futures

CME Group offers copper futures, allowing traders to speculate on or hedge against future price movements of copper. These futures contracts differ from spot copper prices, representing the current market price for immediate delivery.

Copper futures are agreements to buy or sell a specific amount of copper at a predetermined price on a specified future date. They are a type of financial derivative, meaning that their price is based on or derived from that of an underlying asset — in this case, copper.

The standard contract size for CME copper futures is 25,000 pounds, quoted in U.S. dollars per pound. This large contract size makes them a significant tool for large-scale traders and industrial users of copper.

The product code for copper futures on CME Globex, an electronic trading platform, is HG. Traders and investors use this code to identify and trade these specific futures contracts.

Additionally, the CME Group Volatility Index provides insights into the 30-day implied volatility of the copper market. The index reflects expectations of price fluctuations in the copper market based on trading options for copper futures.

Frequently asked questions (FAQs)

What’s the highest price copper has ever been?

The highest price copper has reached was $5.02 per pound on March 6, 2022. This record-setting price was driven by supply chain disruptions and low stockpiles following lockdowns from the COVID-19 pandemic.

Will copper prices go up?

Predicting future commodity prices, including copper, is inherently challenging due to the myriad factors influencing the market. However, various experts and analyses have offered insights into potential bullish trends for copper prices in the coming years.

S&P Global forecasts that copper consumption could double to 50 million metric tons by 2035, with prices in 2024 hitting $8,602 per ton thanks to demand from the Asian market. Similarly, Fitch Solutions forecasts that copper could average $8,000 per ton in 2024 due to short-term demand from China.

Crude oil futures are settling at $85.43. That is up $0.28 or 0.33%.

The high price for the day reached $86.20. The low price was at $84.85.

The weekly inventory data showed that crude oil stocks showed a build of 3.210 million barrels. The expectations was for a draw of -1.511 million barrels. Gasoline stocks in distilates however showed larger than expected drawdowns.

• Gasoline drawdown -4.256M versus -0.820M estimate
• Distilates drawdown -1.268M versus -0.604M estimate

The OPEC JMMC reaffirmed the compliance to production as expected.

The price is up for the fourth consecutive day. Since bottoming on March 27 and $80.55, the price is up $4.89 or 6.07% (five days of trading). The price today treated to the highest level since October 24, 2023. The next major target comes in at the October 20, 2023 high at $89.95. The high price for all of 2023 reached $95.03.

Close support now comes against the 61.8% retracement of the move down from the 2023 high at $84.59. Below that, the March 2024 high at $83.12 is another support level on selling pressure.

For now, the buyers remain in control.

What is the price of platinum today?

The price of platinum opened at $929.17 per ounce, as of 9 a.m. That’s up 0.48% from the previous day and down 5.93% from the beginning of the year.

The lowest trading price within the last day: $916.95 per ounce. The highest platinum spot price in the last 24 hours: $930.91 per ounce.

Platinum spot price

Platinum price chart

The chart below shows how the spot price of platinum is trending over the year.

Year to date, platinum is down 5.93%, as of 9 a.m. The 52-week high reached $1,135.49 on April 21, 2023, and the 52-week low dropped to $843.15 on Nov. 10, 2023.

The precious, silvery-colored metal is priced in U.S. dollars. This means that the fluctuations in the value of the U.S. dollar can impact its price.

The price of XPT/USD reflects the value of one ounce of platinum in U.S. dollars, and it is traded like traditional currency pairs. Because platinum trades occur globally, investors can also track the spot price of platinum in other currencies, such as XPT/EUR for euros and XPT/GBP for British pounds.

Factors that can influence the price of platinum include changes in demand, geopolitical events and tensions in major platinum-producing countries. Of course, investor opinion and speculation can also affect prices.

Precious metals spot prices

Platinum is one of four main precious metals investors can trade via physical bullion, exchange-traded products or futures contracts. Gold, silver and palladium spot prices are also updated 24/7 in various currencies.

Platinum vs. gold price

Currently, platinum trades at $929.17 per ounce, as of 9 a.m., compared to gold, which trades at $2,275.09 per ounce. Year to date, platinum prices are down by 5.93% and gold prices are up by 10.10%.

“Historically, platinum has often been more expensive than gold due to its relative scarcity and unique properties. However, the price of platinum can fluctuate in response to changing market conditions,” said John Bergquist, president of Elysium Financial.

Political instability and supply disruptions in major platinum-producing regions like South Africa and Russia affect prices.

The silvery metal also tends to be a less reliable store of value than gold.

While historically, platinum has been pricier than gold, that flip-flopped briefly in August 2011. When looking at the gold-to-platinum price ratio, platinum was priced above gold from January 2013 until December 2014. Since then, gold has more than doubled its value compared to platinum prices.

Platinum price history

Like any metal, the price of platinum can be volatile. Various factors affect it, the most significant being supply and demand dynamics. Other factors, such as economic conditions, geopolitical events, and changes in industrial and investment demand, can also impact the price of platinum.

At the start of the new millennium, the precious metal’s spot price was around $420. Fast-forward over 20 years, and the current price of platinum has more than doubled.

The spot price soared to new heights, trading in February 2008 at around $2,200 per troy ounce. In November of that year, the price returned to less than $1,000.

Platinum’s spot price has fluctuated between around $800 to $1,400 for the past decade, hovering around the $1,000 threshold on average.

Platinum prices today remain historically low. Prices dropped as low as $623.50 in March 2020 during the COVID-19 pandemic. While prices have recovered, platinum is nowhere near its all-time high of $2,213.20, set on March 3, 2008.

Platinum futures

Futures contracts let investors speculate on the future price movements of an underlying asset like platinum.

These financial contracts represent an agreement between two parties to trade a set amount of platinum at a specified price at a future date. They can be settled by exchanging the physical commodity or cash in place of the commodity.

Futures contracts differ from spot prices in that futures contracts establish a future price whereas spot prices are for immediate delivery. These contracts can be fulfilled by trading the physical commodity or exchanging cash in place of the underlying asset. They are usually traded through an exchange.

Platinum as an investment

The automotive industry creates the highest demand for platinum. Platinum is a key component in manufacturing catalytic converters, which are responsible for reducing vehicle emissions.

In addition to the automotive industry, platinum is widely used in the industrial industry to create medical products, nitric acid and glass. As the demand for these products rises, so does the price of platinum.

It is anticipated that platinum will play an essential role in the development of hydrogen technology. Platinum is used to produce carbon-free hydrogen from renewable energy.

“If hydrogen-based power meets expectations in the coming decade, then one could expect a material demand tailwind in platinum,” said Stash Graham, managing director of Graham Capital Wealth Management.

Precious metals such as platinum, gold and silver have long been used to diversify an investment portfolio.

When choosing investments, it is crucial to consider potential drawbacks. While there may be an increase in the demand for platinum, other factors may throw a wrench in the investment benefits.

When considering an investment, it is essential to consider your current holdings and individual financial goals.

Platinum is rarer than both silver and gold, which could make it attractive to investors seeking a scarce metal. This practice helps protect other holdings, such as stocks, in an economic downturn. Investing in platinum can help balance inflation and economic uncertainties.

Frequently asked questions (FAQs)

How is the spot price of platinum determined?

The London Bullion Market Association is responsible for price auctions of platinum and other industrial metals.

Do platinum prices move with silver and gold?

Platinum pricing is set independently from gold and silver prices, yet there is a historical correlation between the prices of these metals. Although platinum is rarer than silver and gold, metals with industrial uses tend to fluctuate similarly.

• Silver price drops slightly from fresh two-year high of $26.55 ahead of key events.
• The near-term appeal is upbeat due to deepening geopolitical tensions.
• The US Dollar corrects ahead of Fed Powell speech.

Silver price (XAG/USD) faces nominal selling pressure after touching a fresh more than two-year high at $26.55 in the European session on Wednesday. The near-term demand for the white metal is upbeat due to deepening geopolitical tensions and a correction in the US Dollar.

Major agencies have accused Israel’s military for targeting charity staff who were advised to deliver necessities to civilians in Gaza. Non-yielding assets, such as Silver, expect higher investment in times of geopolitical uncertainty.

Meanwhile, a corrective move in the US Dollar has also boosted Silver prices. The US Dollar Index (DXY) drops to 104.73 despite the upbeat United States Manufacturing PMI data for March has improved the economic outlook.

In today’s session, investors will focus on the Federal Reserve (Fed) Chairman Jerome Powell’s speech, and the release of the ADP Employment Change and the Services PMI for March. Fed Powell’s speech could provide clues about when the central bank will start reducing interest rates. The ADP agency will report the number of jobseekers recruited by private employers.

Later this week, the publication of the US Nonfarm Payrolls (NFP) data for March will be the major event. The official labor market data could influence market expectations for Fed rate cuts at the June meeting.

Silver technical analysis

Silver price hits a fresh two-year high at $26.55 after breaking above the crucial resistance of $26.22 from 18 April 2022. The near-term demand is strong as the 20-week Exponential Moving Average (EMA) at $24.08 is sloping higher.

The 14-period Relative Strength Index (RSI) moves into the bullish range of 60.00-80.00, indicating that momentum towards the upside is strong.

(This story was corrected on April 3 at 12:00 GMT to say that Silver price has marked a new two-year high at $26.55 instead of $26.30. It was also corrected to say that resistance at $26.22 was from April 18 2022 instead of April 22)