Gold prices re bound in Asia on Monday as investors looked ahead to a central bank focused week. Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.15% to $1,164.50 a troy ounce. The People's Bank of China cut its benchmark interest rate by a quarter percentage point to 4.35% on Friday, the latest in a series of measures aimed at stimulating economic activity and boosting growth. It was the sixth rate cut over the past 12 months, fueling concerns that economic growth is weakening more than is currently expected.
MCX Copper Tips - LME copper started at USD 5,242/mt last Friday and once shot up to USD 5,319.5/mt thanks to news of China’s interest rate and RRR cut. But later, LME copper moved lower to USD 5,162/mt owing to stronger dollar and closed at USD 5,180/mt. Both trading volumes and positions grew. LME copper inventories fell below 280,000 mt. The positive effect of China’s interest rate and RRR cut is offset by stronger dollar. And a series of main risky events are going to be released this week, including China’s 5th Plenary Session of 18th CPC Central Committee, and US’s interest rate meeting. LME copper should move in USD 5,150-5,220/mt during Asian trading hours.
Crude oil prices remained weak on Monday as a slowing demand outlook implied oversupply will remain in place for months, prompting speculators to cut their bets on rising prices. ANZ bank said it expected prices to remain low for the remainder of this year and that speculators were cutting their bets on higher prices. "Net speculative (U.S.) long positions declined by 13,841 contracts for the week ending 20 October," the bank said. We remain cautious on commodity prices into year-end given weak demand conditions.
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