Bullion prices rose as gold climbed for a second day on speculation that economic recovery would boost commodity demand. Silver and platinum also rose. Crude oil prices reached their highest in two years after US inventories unexpectedly declined and Chinese refiners increased processing. Distillate fuel stockpiles fell by the largest volume since 2007. Base metal prices increased with copper jumping to a record high amid inflation concerns in China and expectations of a copper shortage next year due to demand exceeding production.

1. www.livetips.biz Commodity Markets-Updates & Analysis

2. Bullions
• what was the trading trend in the bullions …?
• Gold rose for a second day on speculation that a
recovering global economy will boost demand for
commodities.
• Silver also rose along with platinum.
• Gold has climbed 28 percent this year, advancing along
with other precious metals, as central banks maintained
low interest rates and governments spent trillions of
dollars to spur growth. Gold is set for a 10th annual gain.
• The Dollar Index, which tracks the greenback’s strength
against six major currencies, is up 1.3 percent this week,
while gold is 1 percent higher.

3. • The typical formula that gold gains when the
dollar weakens or the vice versa hasn’t
worked recently. Investors are rushing to risky
assets like stocks and commodities with ample
market liquidity and as you see gold is now
more like a commodity than a safe-haven
asset.

4. Crude oil.
• How was the crude trading after Inventories report…?
• Oil climbed in New York to the highest in two years
after U.S. crude inventories unexpectedly declined and
as refiners in China, the world’s biggest energy user,
increased processing rates to a record.
• Crude for December delivery rose as much as 64 cents,
or 0.7 percent, to $88.45 a barrel in electronic trading
on the New York Mercantile Exchange. That’s the
highest price since Oct. 9, 2008. The contract was at
$88.39 at 2:35 p.m. Singapore time. Futures, up about
2 percent this week, have advanced every day this
month except for Nov. 9.

5. • Oil has rallied more than 11 percent in 2010 as
depleting fuel stockpiles in the U.S., the
largest crude consumer, signaling a recovery in
demand.
• Distillate fuel inventories, including heating oil
and diesel, fell 4.97 million barrels to 159.9
million, the seventh weekly drop, according to
yesterday’s Energy Department report. That’s
the biggest volume decrease since February
2007.

6. Base metals.
• How was the base metals are performing…?
• Copper jumped to a record after China’s inflation
reached a two-year high, prompting investors to
buy commodities as a hedge against rising
consumer prices amid a credit rating update by
Moody’s Investors Service.
• China’s October copper output fell 0.2 percent
from a year ago to 400,000 metric tons, the
statistics bureau said today.

7. • Refined-copper output will lag behind demand by
435,000 tons next year, the first shortage since
2007, according to the International Copper
Study Group. Consumption growth in China, the
world’s largest user, is expected to exceed 9
percent in 2011, Reuters reported
• Aluminum in London advanced 1.1 percent, zinc
rose 1.7 percent, and lead increased 1.27
percent. Nickel appreciated 1.28 percent, and tin
moved up 1.1 percent.