Commodity Opening Bell

Bullion - Opens on negative Note Gold -29820-29840 Silver -39830-39860 

Energy - Opens on positive Note Crude Oil -3415-3430 Natural Gas -199-198 

Base Metals - Opens on positive Note Copper -425.80-426 Nickel -688-690 Lead -161.80-162 Zinc - 206.30-206.60 Aluminium -138.10-138.20

COMMODITY MARKET NEWS

Precious Metals 

Precious metals are likely to open flat as the dollar extended gains post the speech by Janet Yellen. While there was nothing new in her comments, she continued to bat for gradual rate hikes which reinforced odds of a hike in December. December rate hike odds are near 79% now compared to 71% a day ago. Geo-political tensions have subsided again but continue to support gold prices at lower levels. North Korea has upped the rhetoric after its foreign minister declared that they can shoot down US warplanes. 

Base Metals 

Base metals traded mixed yesterday with LME copper hovered near its lowest since mid-August, subdued by a stronger dollar and ongoing concerns over flagging economic growth in China. China's economic growth likely slipped in the third quarter but was still in far better shape than last year, while adding that major risks are looming for 2018. U.S. consumer confidence fell in September and home sales dropped to an eight month low in August due to the impact of Hurricanes Harvey and Irma.

Energy 

Crude oil prices are likely to open higher after a small correction yesterday. API data showed that US oil stocks unexpectedly fell last week after three weeks of increase due to the hurricane. Oil inventories fell by 0.76 million and the EIA data later today will provide further confirmation. Prices have been jumping higher this week as tighter physical markets have revived market sentiment. 

Precious Metals 

Precious metals are likely to open higher as geopolitical tensions flared up once again after comments from North Korea. North Korea has upped the rhetoric after its foreign minister declared that they can shoot down US warplanes. Gold gained even as the dollar has staged a slight rebound at the start of this week. The euro was under pressure as Angela Merkel won with a lesser margin than expected in Germany and the far-right party gained vote-share. On the whole, the Janet Yellen speech today and US GDP data later in the week will provide further directional triggers to gold. Janet Yellen’s comments will be closely analyzed to gauge the pace of future rate hikes.

Base Metals 

Base metals recovered from early morning to close at highest point for day yesterday. Zinc and nickel prices have risen after steep falls late last week while copper prices have stabilised, but gains have been limited by caution over demand outlook from top metals consumer China and stronger US dollar. Tight supplies of immediately available metal raised premium of cash zinc to three-month contract to its highest since 2007 at $US66, which is likely to encourage deliveries into LME warehouses.

Energy 

Crude oil prices are likely to extend gains after jumping 3% yesterday as tighter physical markets have revived market sentiment. Turkey threatened to halt Kurdish oil exports through its Ceyhan port in response to referendum yesterday. Baker Hughes data show that number of oil rigs in US fell by 5 to 744 last week. OPEC meeting comments showed that decision about extending the supply cuts will be taken in January. OPEC/non-OPEC technical committee estimates that compliance to output cuts reached 116% in August. Brent prices have been supported as demand for prompt-loading barrels at North Sea crude market has jumped and supply remains lower due to oilfield maintenance. Near term bias for oil remains positive and prices sustaining above $50 will further support technical buying. 

Precious metals are likely to open flattish as markets await new triggers this week. The dollar has staged a slight rebound as other currencies weakened. The yen fell on reports that Shinzo Abe may seek an additional stimulus of 2 trillion yen to aid economic growth. The euro was under pressure as Angela Merkel won with a lesser margin than expected in Germany and the far-right party gained vote-share. The pound has been subdued after Moody’s lowered UK’s credit rating by a notch to Aa2.

Base Metals 

Base metals have been trading choppy in a range; with the short term bias still remains confusing. LME zinc bounced back as markets stabilized on Monday after investors slashed risk late last week on concerns about China's credit and escalating tensions over North Korea. Copper witnessed some liquidation as Hedge funds and money managers cut their net long position in COMEX copper positions by 21,558 contracts to 99,729 in week to September 19.

Energy 

Crude oil prices are likely to open flat but a third consecutive drop in US rig count will support prices. Baker Hughes data show that the number of oil rigs in the US fell by 5 to 744 last week. The OPEC meeting comments showed that the decision about extending the supply cuts will be taken in January. OPEC/nonOPEC technical committee estimates that compliance to output cuts reached 116% in August. Brent prices have been supported as demand for prompt-loading barrels at North Sea crude market has jumped and supply remains lower due to oilfield maintenance. On the other hand, US production has almost fully rebounded after Hurricane impact and is now close to 9.51 mbpd.

Oil prices steady ahead of OPEC meeting on supply cut extension

Commodity Opening Bell 

Bullion - Opens on positive Note Gold -29660-29700 Silver -40000-40030 

Energy - Opens on positive Note Crude Oil -3300-3305 Natural Gas -192.20-192.50

 

Base Metals - Opens on negative Note Copper -420-420.50 Nickel -688-690 Lead -158-157.50 Zinc - 197.50-198 Aluminium -137.30-137.50

COMMODITY MARKET NEWS

Gold fell about 1 percent to its lowest in nearly four weeks on Thursday, shrugging off further weakness in the dollar, after the Federal Reserve signalled it was on track to raise U.S. interest rates again in December. The metal is highly sensitive to rising U.S. rates, which boost the cost of holding non-yielding bullion relative to other assets, while lifting the dollar, in which it is priced.

Silver was down 1.1 percent at $16.94 an ounce, after falling to its lowest since Aug. 25 earlier in the session at $16.80.

Oil prices settled nearly flat on Thursday, the eve of a meeting of major oil-producing countries in Vienna to discuss whether they will extend production limits that have helped reduce the global crude glut.

We expect Natural gas prices to trade sideways on the back of short covering after drop in prices

Copper hit its lowest in more than a month and nickel slid as much as 6 percent on Thursday after the Federal Reserve raised expectations of another U.S. interest rate hike this year, boosting the dollar. The Fed said on Wednesday it expected one more increase by the end of the year, driving the dollar to a two-month high versus the yen on Thursday and making dollar-priced metals costlier for nonU.S. investors. China's top copper smelters have raised the floor for fourthquarter treatment and refining charges by as much as 10 percent. The global world refined copper market showed a 70,000 tonne deficit in June, compared with a 50,000 tonne deficit in May. The Shanghai Futures Exchange (ShFE) said it would triple the transaction fee on its nickel contract for January 2018 delivery in its latest bid to snuff out speculators. LME nickel fell by more than 6 percent during the session but ended down 3.3 percent at $11,005 a tonne. LME aluminium eased from five-year highs reached the previous session to finish down 0.3 percent at $2,171 a tonne but expectations of tighter supply into early next year underpinned prices.

Commodity Opening Bell 

Bullion - Opens on negative Note Gold -29500-29550 Silver -39720-39780 

Energy - Opens on negative Note Crude Oil -3280-3282 Natural Gas -198.80-199 

Base Metals - Opens on negative Note Copper -420-421 Nickel -716-717 Lead -156.50-157 Zinc - 200.20-200.40 Aluminium -138.50-138.60

COMMODITY MARKET NEWS

Gold prices fell 1 percent on Wednesday after the U.S. Federal Reserve left interest rates unchanged but signaled it still expected to raise interest rates by year-end. Gold had been creeping higher in the minutes before the Fed released a statement about its latest two-day policy meeting, then reversed course and fell. It briefly sank below the $1,300 mark that traders had viewed as psychological support. Bullion hit $1,295.81 an ounce, the lowest since Aug. 28.

We expect silver prices to trade negative on the back of FOMC statements.

Oil prices settled up 2 percent on Wednesday despite a rise in U.S. crude inventories, with the market heading for its largest third-quarter gain in 13 years after the Iraqi oil minister said OPEC and its partners were considering extending or deepening output cuts. Crude prices were on course for a nearly 16 percent rise this quarter, which would make this year's performance the strongest for the third quarter since 2004.

Aluminium soared to its highest in five years on Wednesday on reports that mammoth Chinese producer Chinalco was cutting output two months early and would soon pare back stocks of available metal 

Gold was flat on Tuesday, barely budged from the prior session's twoweek low, with trading lackluster as Federal Reserve policy makers headed into a two-day meeting that financial markets will watch for clues on the outlook for U.S. monetary tightening. Trading volume was "slightly softer, which is generally to be expected ahead of the Fed," said Suki Cooper, precious metals analyst at Standard Chartered Bank in New York. 

We expect silver prices to trade negative on the back of relief from North Korea’s Missile tests.

Oil prices ended lower on Tuesday, retreating from near five-month highs ahead of a meeting between key oil producers on the outlook for further supply cuts. The market, however, remained buoyant ahead of Friday's meeting between the Organization of the Petroleum Exporting Countries and non-OPEC producers to discuss the state of their 1.8-million barrel-perday supply cut deal.

Nickel prices fell on Tuesday towards the one-month lows hit last week as funds took profits, but concern about supplies from the Philippines and healthy demand, particularly from Chinese stainless steel mills, are expected to lend support. Philippine lawmakers last month filed a bill seeking to ban mining in watershed areas and exports of unprocessed ores and require miners to get legislative approval before operating. The Philippines is the world's top nickel ore supplier. Data from the International Nickel Study Group showed the nickel market deficit at 400 tonnes in June compared with a 6,700 tonne shortfall in May. 

Commodity Opening Bell 

Bullion - Opens on positive Note Gold -29555-29565 Silver -39820-39860

Energy - Opens on negative Note Crude Oil -3202-3205 Natural Gas -202-202.20 

Base Metals - Opens on mixed Note Copper -423-423.30 Nickel -707-708 Lead -151.80-152 Zinc - 200.20-200.40 Aluminium -133.50-133

COMMODITY MARKET NEWS

Precious Metals

Precious Metals are likely to open flattish after a steep selloff yesterday as equities advanced globally owing to better risk sentiment. Donald Trump is due to make his first speech at the UN today and his comments will be closely watched in the current geopolitical environment. Apart from that, Central bank policies are back into focus as geo-political tensions have eased in the past few days. The BOE last week hinted that a rate hike may happen sooner than markets expect. Earlier, the ECB indicated that its stimulus unwinding plan could be out by October. The Fed meeting this week will be equally important for hints about the balance sheet trimming. The Fed is likely to provide a timeline of its start and keep the possibility of a December rate hike open. 

Base Metals 

Base metals retraced some of last week’s losses, with zinc gaining the most backed by tighter Cash-3M spread and prices have also heated up given expectations that tighter mine supply will impede production of refined metal. China’s August zinc production fell 4.6%. China’s new home prices rose in August at the slowest pace in seven months and fell in more cities as government cooling measures dampened speculation.

Energy 

Crude oil is likely to open flat with WTI holding near $50 levels. Some support to prices was seen as Shell declared force majeure on exports of Nigeria’s Bonny Light crude. US oil rig count fell for yet another week and helped prices rally further. The number of active rigs drilling for oil dropped by 7 to 749 last week, a second straight decline. The rig count has fallen by 7 in Q3 so far after increasing sharply in the first half of this year.

Precious Metals 

Precious Metals are likely to open lower as the dollar and equities advanced owing to better risk appetite. Central bank policies are back into focus as geopolitical tensions have eased in the past few days. The BOE last week hinted that a rate hike may happen sooner than markets expect. Earlier, the ECB indicated that its stimulus unwinding plan could be out by October. The Fed meeting this week will be equally important for hints about the balance sheet trimming. The Fed is likely to provide a timeline of its start and keep the possibility of a December rate hike open. The headline CPI in the US touched 1.9% y/y in August, a seven month high while core CPI grew at 1.7% y/y. Consequently, December rate hike odds have reached close to 55%.

Base Metals 

Base metals took a halt form the recent sell off, but still continue to trade near last week's one-month low, while prices in Shanghai slid for a fourth consecutive session on concerns over slowing growth in top consumer China. China posted disappointing data last Thursday -- including its slowest growth in investment in nearly 18 years -- suggesting economy is finally starting to lose some momentum as borrowing costs rise. China's non-ferrous metal output fell to a oneyear low in August, in a sign that Beijing's environmental crackdown is curbing supplies of base metals, with aluminum also hit by efforts to rein in output. 

Energy 

Crude oil is likely to open flat after a strong rally last week with WTI holding near $50 levels. US oil rig count fell for yet another week and helped prices rally further. The number of active rigs drilling for oil dropped by 7 to 749 last week, a second straight decline. The rig count has fallen by 7 in Q3 so far after increasing sharply in the first half of this year. The trend for oil prices was already up last week after the OPEC and IEA raised global demand forecasts. 

Bullion - Opens on negative Note Gold -29980-30000 Silver -41110-41150 

Energy - Opens on negative Note Crude Oil -3190-3200 Natural Gas -196.50-196.20 

Base Metals - Opens on mixed Note Copper -420.50-421 Nickel -712-715 Lead -147.50-148 Zinc - 192.90-193.30 Aluminium -132.50-133

COMMODITY MARKET NEWS UPDATE

Precious metals rebounded from a two-week low on Thursday as North Korea threatened the United States and Japan, and the dollar softened despite strong U.S. consumer inflation data, which could allow further interest rate increases from the Federal Reserve. 

Precious metals are trading higher on COMEX today. We expect prices to trade higher for the day as North Korea's latest missile launch over Japan triggered safe-haven buying, but gains were limited as strong U.S. inflation data raised the spectre of another interest rate hike.

Industrial metals prices fell to a four-week low on Thursday after some weaker than expected data from China pointed to slowing demand from the metal's top consumer.

Crude oil prices rose on Thursday, with Brent closing at a five-month high, as the dollar weakened and after a string of reports forecast the market would tighten further as fuel demand increased. 

COMMODITY OPENING BELL

Bullion - Opens on negative Note Gold -29820-29840 Silver -40950-40980 

Energy - Opens on negative Note Crude Oil -3157-3160 Natural Gas -196.50-197 

Base Metals - Opens on mixed Note Copper -423.50-424.50 Nickel -730-730.50 Lead -146.10-146 Zinc - 194.40-194.60 Aluminium -134.75-134.50

COMMODITY MARKET NEWS

Gold fell to a 1-1/2-week low on Wednesday, erasing earlier gains as the dollar index jumped, though a retreat in global stocks after Tuesday's record high prevented deeper losses. A firmer dollar makes gold more expensive for holders of other currencies.

We expect silver prices to trade negative on the back of relief from North Korea’s Missile tests.

Crude oil prices rose on Wednesday after the International Energy Agency (IEA) said a global surplus of crude was starting to shrink, even though U.S. data showed another big increase in domestic inventories due to Hurricane Harvey. U.S. gasoline prices fell despite a record drawdown in fuel inventories. Analysts expect supply to increase as refineries return online after Harvey shut nearly a quarter of U.S. capacity. Demand is expected to slip due to the effects of Hurricane Irma on high-consuming states of Florida and Georgia.

We expect Natural gas prices to trade sideways on the back of profit booking after an up-move. 

Copper prices fell to three-week lows on Wednesday on profittaking, rising stocks in London Metal Exchange warehouses, nervousness about demand in China and a higher dollar. China's new property construction starts fell 7 percent in July yearon-year, the first fall since last September. Real estate investment in China rose 7.9 percent in January-July from the same period a year earlier, easing from 8.5 percent in the first half of this year.  

Commodity Opening Bell 

Bullion - Opens on positive Note Gold -29980-29995 Silver -41250-41280 

Energy - Opens on mixed Note Crude Oil -3087-3092 Natural Gas -193-193.20 

Base Metals - Opens on negative Note Copper -430-430.50 Nickel -750-755 Lead -145.70-146 Zinc - 195.10-195.60 Aluminium -134.75-135

COMMODITY MARKET NEWS

Gold bounced up from the lowest level in more than a week on Tuesday as the dollar pared gains and U.S. President Donald Trump said U.N. sanctions on North Korea are "nothing compared to what ultimately will have to happen."

Silver was up 0.3 percent at $17.85 an ounce after hitting its lowest since Sept. 1 at $17.67. 

Oil prices rose on Tuesday after OPEC forecast higher demand in 2018 and Russia and Venezuela confirmed their commitment to a productioncutting deal to reduce the global crude glut. In its monthly report, the Organization of the Petroleum Exporting Countries also said the two hurricanes that hit the United States in recent weeks would have a "negligible" impact on demand.

We expect Natural gas prices to trade sideways on the back of profit booking after an up-move.

We expect base metal prices likely to trade sideways on the back of short covering after sharp fall in prices.  

Commodity Opening Bell 

Bullion - Opens on negative Note Gold -29850-29900 Silver -41050-41100 

Energy - Opens on positive Note Crude Oil -3076-3078 Natural Gas -189.10-189.40 

Base Metals - Opens on mixed Note Copper -433.20-433.50 Nickel -743-744 Lead -144.25-144.50 Zinc - 197.20-197.50 Aluminium -134.30-134.40

COMMODITY MARKET NEWS

Oil prices edged down in early Asian trading on Tuesday, as traders weighed up the dampening effect on demand of Hurricane Irma versus refinery restarts following Hurricane Harvey that should lead to more crude oil processing.

International benchmark Brent crude was down 8 cents, or 0.2 percent, at $53.76 per barrel by 0108 GMT from the previous close.

Commodity Opening Bell

Bullion - Opens on negative Note Gold -30050-30100 Silver -41150-41200 

Energy - Opens on positive Note Crude Oil -3060-3062 Natural Gas -187.10-187.50 

Base Metals - Opens on positive Note Copper -432-432.50 Nickel -740-742 Lead -144.25-144.50 Zinc - 195-195.50 Aluminium -133.15-133.40

COMMODITY MARKET NEWS

Gold held near its highest in more than a year on Friday as the U.S. dollar dropped and weak economic data lowered expectations of a December interest rate rise in the United States. The U.S. dollar hit a more than 2-1/2-year low against a basket of major rivals on reduced expectations for another Federal Reserve rate increase this year, while the euro hit multi-year highs after European Central Bank President Mario Draghi suggested that the ECB might begin tapering its massive stimulus program this fall.

Silver was down 0.3 percent at $18.01 an ounce after touching $18.21, its best since April. It rose about 2 percent on the week.

U.S. crude prices tumbled down more than 3 percent on Friday worries that energy demand would be hit hard as Hurricane Irma, one of the most powerful storms in a century, headed toward Florida and the Southeast.

opper slumped on Friday on profit-taking as analysts said a 20 percent price surge since June was not justified given China's copper imports had only been stable for the past four months.

Commodity Opening Bell

Bullion - Opens on positive Note Gold -30370-30380 Silver -41750-41800 

Energy - Opens on mixed Note Crude Oil -3147-3148 Natural Gas -190-190.10 

Base Metals - Opens on mixed Note Copper -446-446.30 Nickel -781-781.50 Lead -149-149.20 Zinc - 200.10-200.30 Aluminium -134.50-134.20

COMMODITY MARKET NEWS

Gold prices rose to a one-year peak on Thursday after the dollar tumbled on the back of weak U.S. jobs data and an unchanged growth and inflation outlook from the European Central Bank. The number of Americans filing for unemployment benefits jumped to its highest in more than two years last week amid a surge in applications in hurricane-ravaged Texas, sending the dollar lower.

We expect silver prices to trade positive on the back of weak economic data from the US.

Oil futures were mixed on Thursday, with Brent rising to a 5-1/2 month high while U.S. crude slipped on a bigger-than expected crude stock build, as the restart of U.S. refiners after Hurricane Harvey was countered by the threat of Hurricane Irma. The U.S. Energy Information Administration said on Thursday U.S. weekly crude stocks increased 4.6 million barrels last week, topping analysts' forecast for a 4.0-million-barrel build in a Reuters poll. Reflecting the impact of Harvey which hit the Gulf Coast on Aug. 25, the EIA said U.S. oil refinery utilization rates slumped 16.9 percentage points to 79.7 percent last week, the lowest rate since 2010.

Copper prices softened on Thursday as doubts about the strength of demand in top consumer China triggered profit-taking, though declines were kept in check by a weaker dollar on receding expectations of an imminent rise in interest rates. China said in June it will encourage wealth management firms to invest in commodity futures to promote its domestic derivatives industry and raise Chinese funds allocation to commodities 

Commodity Opening Bell 

Bullion - Opens on mixed Note Gold -30075-30080 Silver -41250-41300 

Energy - Opens on mixed Note Crude Oil -3150-3155 Natural Gas -192.90-193.10

Base Metals - Opens on mixed Note Copper -446.50-447 Nickel -783-784 Lead -149.40-149.50 Zinc - 198.70-199 Aluminium -134-134.30

COMMODITY MARKET NEWS

Precious Metals 

Precious Metals are likely to open flat and some profit-taking is likely to be seen as concerns over US debt ceiling subsided temporarily. The latest deal will provide government funding until Dec. 15. This led to some relief in global markets which had been grappling with geo-political tensions after North Korea conducted a nuclear test over the weekend. Economic data from the US also suggested that services sector activity remained firm in August owing to strong gains in new orders and employment. The odds of a December rate hike are near 36% and the Fed meeting later this month is unlikely to provide any surprises.

Base Metals 

Base metals closed up for yet another session after some consolidation during the days. LME copper edged back towards three-year highs as the dollar lost ground against the euro ahead of a European Monetary policy meeting later, while a brighter outlook for global manufacturing growth underpinned prices.

Energy 

Crude oil is likely to open slightly lower after yet another strong rally yesterday. Oil exports by the OPEC were 25.19 million barrels per day (bpd) in August, their lowest level since April. Prices also have been gaining as US refineries gear up for a return after being shut due to the Hurricane Harvey. Nearly 3.8 million barrels of daily refining capacity is still shut in but as refineries come back, more oil will be consumed and more products will be produced

Commodity Opening Bell 

Bullion - Opens on positive Note Gold -30180-3200 Silver -41480-41500 

Energy - Opens on mixed Note Crude Oil -3045-3047 Natural Gas -194-194.50 

Base Metals - Opens on mixed Note Copper -449.40-449.70 Nickel -784.50-785.50 Lead -152.80-153 Zinc - 204.80-205 Aluminium -134.50-135

COMMODITY MARKET NEWS

Precious Metals

Precious Metals turned bullish with escalating geopolitical tensions and pushing gold touching its highest in 10 months after U.S. job growth slowed more than expected in Aug, but pared gains when investors judged that figures were unlikely to change outlook for U.S. interest rate rises. Data showed U.S. job growth slowed more than expected but pace of gains should be more than enough for Fed to announce plan to start trimming a massive bond portfolio accumulated.

Base Metals 

Base metals continue to trade firm, with LME copper hitting fresh three-year high on expectations of further signs of a healthy economic outlook for China. Nickel was just shy of Monday's 14-month peak on China's robust industrial outlook, aided by supply side constraints. Chinese rebar futures were steady after rising much as 5% to highest since February 2013. 

Energy 

Choppiness in likely to continue for short term supported by shutdowns of U.S. production following Hurricane Harvey, but pressured by expected downturn in crude demand as storm knocked out refineries along the Gulf of Mexico coast. Department of Energy reported eight U.S. oil refineries with total of 2.1 million bpd, or 11.4% of total U.S. refining capacity, were still shut down. Iran’s oil minister announcement of OPEC members' compliance with agreement to reduce output to have improved in recent months too supported prices on lower levels. Markets were nervously eyeing developments in North Korea, where military conducted its sixth and most powerful nuclear test over weekend, prompting threat of "massive" military response from US if it or its allies were threatened. Market participants will now shift their focus to crude oil inventories data that will be released on Thursday.

Commodity Opening Bell 

Bullion - Opens on positive Note Gold -30050-30080 Silver -41250-41290

Energy - Opens on mixed Note Crude Oil -3020-3040 Natural Gas -195-196 

Base Metals - Opens on mixed Note Copper -445-446 Nickel -780-781 Lead -152.60-153 Zinc - 204.30-204 Aluminium -135.70-135.30

COMMODITY MARKET TIPS

COMMODITY MARKET NEWS

Gold rose to the highest in nearly 10 months on Friday after U.S. job growth slowed more than expected in August, but pared gains when investors judged that the figures were unlikely to change the outlook for U.S. interest rate rises. Data showed U.S. job growth slowed more than expected, but the pace of gains should be more than enough for the Federal Reserve to announce a plan to start trimming a massive bond portfolio accumulated.

Silver was up 0.6 percent at $17.67 an ounce, after rising to the highest since early June at $17.75.

Benchmark U.S. gasoline prices slid for the first day since Hurricane Harvey struck the U.S. oil industry heartland, as some refineries restarted operations, while oil prices remained under pressure and settled about flat.

We expect Natural gas prices to trade sideways on the back of profit booking after sharp up-move.

We expect base metal prices likely to trade sideways on the back of profit booking after up surge in prices.