Gold prices-Gold prices revived on Thursday from more than five year lows hit in the previous session, as the dollar fell back, releasing its stranglehold on commodities and making gold more affordable for buyers paying with other currencies. Federal Reserve officials on Wednesday continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction. Commodity markets should brace for another assault on prices if, as is widely expected, the U.S. Federal Reserve tightens policy in December and the dollar strengthens further.
MCX Copper Tips-LME copper dived to USD 4,594.5/mt during Asian trading hours after opening at USD 4,665/mt overnight, to close at USD 4,605/mt, down by USD 69.5/mt or 1.49%. Both trading volumes and positions headed for losses. Most US Fed officials support to raise rate in December on the October policy meeting but may hike rate at a slow pace, which indicated US Fed attempted to shake off impact from market volatility. In response, US dollar fell back after continuous gains. This will constrain gains in the US dollar and helping arrest some losses of base metals. US November manufacturing index will be promising, boosting the US dollar.
Crude oil prices-U.S. crude oil prices edged up in early trading in Asia on Thursday but are struggling to break away from the $40 per barrel mark as oversupply and high inventory levels ensure an ongoing glut. The contract fell below $40 for the first time since August on Wednesday, and traders said that the slight gains were more a result of short covering than a more bullish sentiment. Overall, oil markets remain oversupplied, with rising U.S. stockpiles the most visible evidence.
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