Commodity Opening Bell

Bullion - Opens on positive Note Gold -28535-28540 Silver -38090-38150 

Energy - Opens on positive Note Crude Oil -3005-3010 Natural Gas -187.70-188 

Base Metals - Opens on positive Note Copper -393-394 Nickel -627-630 Lead -144.50-145 Zinc - 180-180.50 Aluminium -122.40-122.45

COMMODITY  FUNDAMENTAL NEWS

Precious metals are likely to open flat as investors await the Fed meeting that starts today. The outcome of the meeting is due tomorrow but it is unlikely that the statement will offer anything new. The Fed may maintain that it remains on course and probably hint concern about low inflation readings in the recent months. The dollar is trading near a 13 month low which has kept precious metals buoyant in recent days. Political uncertainty in US has also underpinned the dollar after senior adviser Jared Kushner confirmed four contacts with Russians during Trump’s presidential campaign and the transition. Meanwhile, the Russian central bank added 9.3 tonnes of gold to its reserves in June, taking its total holdings to 1,717 tonnes. From a trading perspective, gold and silver are likely to maintain an upward bias in the near term as long as the dollar stays weak.

Base metals continue to add gains, with some surging to monthly highs today. Copper held overnight gains even as the U.S. dollar made only a modest recovery from its lowest point in more than a year. Copper miner Antofagasta has signed a wage deal with workers at its Zaldivar deposit in Chile, averting threatened labor action. IMF kept its growth forecasts for the world economy unchanged for this year and next, although it revised up growth expectations for the euro zone and China. Refined copper imports surged sequentially to 271kt in June, though the YoY comparison still shows a 11% decline Refined lead imports into China have shot up this year. In the previous two years, imports were at around 1kt per year – totally insignificant. This year they're running at an annualised rate of about 100kt, which is way up on past years but still represents less than 2% of Chinese refined consumption. 

Crude oil prices are likely to extend gains after the OPEC meeting yesterday boosted hopes of better compliance in the coming months. Members also hinted about extending cuts beyond March 2018 if required.