BRENT OIL EDGES UP, NEAR 26 MONTH HIGH AMID SUPPLY CONCERNS | TODAY COMMODITY MARKET OUTLOOK 27 SEPT 2017.


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



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. 

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