In this State of the Economy Podcast, Subramani Rao Mancombu and Kishore Narne, Director of Commodities & Currencies at Motilal Oswal Financial Services, explores the world of commodities and their 2024 outlook.

Narne discusses the dynamic changes witnessed in the Indian commodity markets, emphasizing the momentum gained after the introduction of options trading, particularly in crude oil and gas.

The commodities market has experienced significant shifts since the onset of the COVID-19 pandemic, and geopolitical events, such as the Ukraine war, have added further complexity.

The conversation expands to global markets, addressing the turmoil in the energy sector amidst the Russia-Ukraine conflict and the Israel-Hamas standoff. Despite these challenges, Narne explains why crude oil and natural gas prices haven’t witnessed a substantial surge, attributing it to sluggish demand, particularly from China.

As the discussion unfolds, Narne provides a comprehensive overview of various commodities, including gold, silver, copper, and other metals. He reflects on the anticipated rate cuts and recessionary fears that drove gold prices to record highs, only to see a tapering off towards the end of 2023.

Meanwhile, non-ferrous industrial metals like nickel, zinc, and copper show positive signs, buoyed by increased demand from China after the COVID-19 reopening.

The podcast explores the global economic scenario, analysing the slowdown in certain regions, such as Europe, and the potential upside and downside risks associated with these market trends. Narne emphasises the impact of the US Federal Reserve’s rate decisions on the dollar and, consequently, on commodities.

Looking ahead to 2024, Narne shares insights into the expected performance of commodities in India.In the latter half of 2024, the anticipated impact of a US Federal Reserve rate cut is expected to bolster the prices of both gold and silver. Gold prices may potentially surge to ₹70,000 per 10 gm, while silver prices are likely to surpass ₹80,000 per kg.

Listen in to know more!

(Host: Subramani Ra Mancombu; Producer: Siddharth MC)

About the State of the Economy Podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups