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Which is the most traded commodity in India? Can you please specify the other major countries’ commodity market timings in IST?
Uday
In India, on the Multi Commodity Exchange (MCX), the crude oil futures contract is the most traded commodity. Gold and lead futures contract are the next highly traded, while the silver and natural gas futures contracts take the fourth and fifth place, respectively.
To trade on the MCX-Crude oil contract, you can track the futures contract traded on the New York Mercantile Exchange (NYMEX). The NYMEX contract is traded almost round the clock barring about an hour’s break every day. The MCX contract is traded between 10 am and 11:55 pm. More volatility can be seen in the evening session between 5 pm and 11:55 pm which coincides with the US trading sessions. Apart from global events, US crude oil inventory data, which is released every Wednesday, is among key data that influences the price movement. During winter (from November first Sunday to March first Sunday) this data is released at 9 pm IST. In summer (from March first Sunday to November first Sunday) it is released at 8 pm IST. Similarly, the NYMEX natural gas contract can be tracked for trading the MCX-natural gas contract. The US natural gas inventory data on every Thursday is important data to be watched. The timing of this data release also varies similar to that of the crude oil inventory data as 8 pm or 9 pm on Thursday depending on whether it is summer or winter.
As for gold, the global spot prices can be tracked for trading the MCX-gold futures contract. While global spot prices are traded round the clock, the MCX contract is traded between 10 am and 11:55 pm. Similarly, global silver spot prices, also traded through the day, can be followed while trading the MCX-Silver futures contract. The US dollar movement and the movement in the Indian rupee are the other key indicators that will need a close watch as they influence the price movements in the MCX-gold and silver futures contract.
The impact of the US dollar will be at the peak during the evening sessions (between 5 pm and 11:55 pm) on the MCX-gold and silver contract as all important US economic data releases are out during that time; also, the Indian currency market closes at 5 pm.
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