Commodity Opening Bell 

Bullion - Opens on negative Note Gold -28370-28390 Silver -37995-38010 

Energy - Opens on positive Note Crude Oil -3110-3120 Natural Gas -190.50-190.80 

Base Metals - Opens on positive Note Copper -407-411 Nickel -642.50-643 Lead -148.80-149 Zinc - 183.60-183.75 Aluminium -125-125.20

COMMODITY MARKET FUNDAMENTALS

Precious metals are likely to open lower as investors await the outcome of the Fed meeting today. It is unlikely that the statement will offer anything new but subtle hints will be closely watched. The Fed may maintain that it remains on course and probably hint concern about low inflation readings in the recent months. The dollar continues to trade near 13 month low which has kept precious metals buoyant in recent days. Political uncertainty in US has also underpinned the dollar and a close eye will be on Trump Jr. as he appears before the senate committee today. Meanwhile, ETF holdings of gold continue to decline with SPDR holdings down 1.1% to 800.4 tonnes yesterday. From a trading perspective, gold and silver are likely to trade in a range today with possibility of a correction ahead of the FOMC statement.  

Base metals continued their winning streak as most traded at monthly highs and some inched to yearly highs. Copper prices hit their highest in more than two years, boosted by signs of robust demand from China, tight supplies, a weak dollar and a break of key technical levels. Talk of a Chinese ban on scrap containing copper based on the recent notification may have helped trigger copper's rally. Dollar fell to a 13-month low against a basket of major currencies. U.S. consumer confidence jumped to a near 16-year high in July amid optimism over the labour market while house prices maintained their upward trend in May. Philippines President Duterte wants all mineral resources extracted in the country to be processed domestically and, if possible, to stop exporting such commodities. The Philippines is the world's top supplier of nickel ore, for which China is the biggest market, which triggered rally in Nickel.

Crude oil prices are likely to extend gains after the API reported sharp drawdown in US inventories last week. Data showed that US oil inventories fell by 10.2 million barrels while gasoline inventories increased and distillate stocks drew. Sentiment has also turned positive after the OPEC meeting this week boosted hopes of better compliance in the coming months. Members also hinted about extending cuts beyond March 2018 if required. The meeting suggested that exports may also be monitored and Saudi pledged to cut exports further in August. Saudi will export 6.6 mbpd in August, down from 6.9 mbpd in May.