TODAY COMMODITY MARKET OVERVIEW AND LEVELS OUTLOOK 12 OCT 2017.

Bullion - Opens on positive Note Gold -29800-29850 Silver -40300-40320

Energy - Opens on negative Note Crude Oil -3326-3330 Natural Gas -189.90-190

Base Metals - Opens on negative Note Copper -445.80-446 Nickel -725-726 Lead -165.25-165.50 Zinc - 211.50-212 Aluminium -138.20-138.30

BULLION TIPS

COMMODITY MARKET NEWS

Precious Metals

Precious metals are likely to open higher as the Fed minutes released yesterday were seen as dovish. While December rate hike remains on the table, few Fed members expressed concern about low inflation readings this year. This suggests that the concern over inflation was more compared to what was visible in the FOMC statement in September. The dollar also came under pressure as the euro’s relief rally continued due to reduced concerns about Catalonian independence.

Base Metals

Base metals traded firm yesterday, where copper inched to its highest in more than a month, underpinned by steady demand and weaker dollar after Federal Reserve showed guarded view towards inflation. Following the release of Fed's last policy meeting, dollar index slipped to two-week low. The global lead market narrowed its output deficit to 4,600 tonnes in August from 31,900 tonnes in July. For January to August, lead market had output deficit of 119,000 tonnes compared with surplus of 49,000 tonnes in same period last year.

Energy

Crude is likely to open lower as API data released earlier today showed surprise build of 3.09 million barrels in US crude inventories. Oil prices may however find support at lower levels as OPEC raised its global demand forecast yet again. OPEC expects oil demand growth at 1.45 mbpd this year and 1.38 mbpd next year. Saudi is also set to cut crude oil allocations for November by 560,000 bpd to 7.15 mbpd. US inventory data due later today is likely to show draw down of 1.8 million barrels in oil inventories. Hurricane Nate impacted nearly 90% of Gulf of Mexico oil production initially but impact is now reduced and about 32% of production remains offline.