Commodities Face Volatility Amid Weak Jobs Data and Geopolitical Tensions

Commodities faced a volatile week as mixed economic data and geopolitical tensions influenced market sentiment. Gold prices saw a weekly decline of over 3%, pressured by higher U.S. Treasury yields and a stronger dollar, despite a weak U.S. jobs report. The U.S. Bureau of Labour Statistics reported that non-farm payrolls rose by just 29,000 in September, far below the estimated 89,000, marking the slowest monthly growth of the year. The unemployment rate also rose to 4.2% from 4.1% in August, reinforcing expectations that the Federal Reserve may keep interest rates unchanged.

Silver prices hovered around $60 an ounce, benefiting from the weaker-than-expected U.S. employment data. The softer labor-market data reduced expectations for an October rate hike, with money markets pricing in nearly a 20% chance of an increase this month, while the probability of a December hike remained above 80%. WTI Crude Oil rebounded from earlier losses, reversing higher as improving Middle East crude flows and a decision by G7 countries to release emergency crude stocks eased supply concerns. Despite the rebound, both Brent and WTI remained on track for weekly losses.

Copper futures steadied around $6.52 per pound but faced a nearly 3% weekly decline due to signs of weakening industrial activity in China. The metal also faced pressure from a stronger dollar, elevated Treasury yields, and higher oil prices. On the supply side, Chilean output could face disruption due to a strike at an Antofagasta-owned site, while Panama's government proposed resuming operations at a major mine.

Technical outlooks for MCX Gold and Silver indicate weakening momentum, with both metals facing potential downward pressure. MCX Crude Oil showed improving momentum but remained within a sideways trading range. MCX Copper, despite a recent decline, maintained a positive trend with strong resistance at Rs 1,430.