Gold prices-Gold languished near a four-week low on Tuesday as investors bet the Federal Reserve would hike U.S. rates this year, triggering fund outflows. Gold is seeing a sell-off as investors position themselves for a possible U.S. rate hike this year. Last week, the Fed firmly put a December rate rise in play, hurting earlier expectations that the increase could be pushed to next year on global growth concerns. U.S. economic data on Monday was supportive of a rate hike this year. Manufacturing activity in October hit a 2-1/2-year low, but a rise in new orders offered hope the United States might have seen its worst.
MCX Copper Tips -LME copper started at USD 5,089.5/mt overnight and moved higher to USD 5,133.5/mt before ending at USD 5,120/mt, up USD 7/mt. Both trading volumes and positions declined. Transactions stayed weak. Market sentiment stayed cautious before US nonfarm payrolls due out Friday. US dollar moved in a tight range at highs. Markets lacked major reports overnight. LME copper should range between USD 5,090-5,130/mt during Asian trading hours. Base metals prices are expected to remain weak as the Shanghai Composite Index falls back. US factory orders in September slated for release today are expected to fall but more slowly.
Crude oil prices -U.S. crude futures edged up early on Tuesday, but the market outlook remains bearish as supply still exceeds demand and due to worries the dollar will strengthen when the U.S. Federal Reserve eventually raises interest rates. Crude continues to remain under pressure due to emerging supply-side news and slowing Chinese demand. Russian oil output broke a post-Soviet record in October for the fourth time this year. News from Iran is also painting a negative picture," ANZ bank said in a morning note.
