Gold gained as the dollar declined, making gold more attractive as a safe haven investment. Trading may remain volatile ahead of the upcoming Federal Reserve meeting. Crude oil traded near $82/barrel as a weaker dollar boosted commodity demand, while an unexpected drop in US gasoline stockpiles also provided support. Copper rebounded from recent losses as the dollar resumed its decline, and on concerns about potential supply disruptions at a major Chilean copper mine.

1. Commodity noon session

2. Bullions
• Gold gained as the dollar declined for the first day in three,
increasing demand for the precious metal as a haven
against weakening currencies.
• The “choppy” trading may continue ahead of a Federal
Reserve meeting next week.
• The US dollar rallied and commodities fell yesterday amid
speculation that any monetary program by the Fed to boost
the U.S. economy will be gradual.
• The greenback has declined this month on concern that the
currency may be devalued by further monetary easing that
could be announced next week, and this will be acting as a
supporting factor for bullion prices.

3. • China should buy gold to diversify its foreign-
exchange reserves, International Business Daily, a
newspaper affiliated with the Ministry of
Commerce said yesterday. Report also said that
China will have to take this step for
internationalizing Yuan.
• Silver for December-delivery on the Comex
gained as much as 1.1 percent during Asian
trading session after losing 1.8 percent yesterday.

4. Crude oil.
• Crude oil traded near $82 a barrel in New York as a
weakening dollar boosted investor demand for raw
materials.
• An Energy Department report yesterday showed U.S.
gasoline stockpiles plunged unexpectedly last week.
• US dollar declined versus 15 of its 16 major
counterparts ahead of the U.S. Federal Open Markets
Committee meeting led by Chairman Ben Bernanke,
expected to announce a second round of asset
purchases when it meets next week.
• US dollar fell for the first time in three days against the
euro as Asian stocks gained amid optimism the global
recovery remains intact, damping demand for the
greenback as a refuge.

5. • Gasoline stockpiles unexpectedly dropped by 4.39
million barrels to 214.9 million barrels according to EIA
data release. They were estimated to advance by
625,000 barrels.
• Distillate fuel supplies, including heating oil and diesel,
declined 1.61 million barrels, the Energy Department
said. They were forecasted to drop by 1.5 million
barrels.
• U.S. crude inventories increased 5.01 million barrels to
366.2 million in the week ended Oct. 22, the biggest
jump since July.
• Market will be taking cues from the US dollar
movements and equity market movements in the
coming days.

6. Base metals.
• Copper rebounded from a two-day drop as the dollar
resumed a decline, and on concern that there may be
supply disruptions at the world’s fourth-largest mine.
• Workers at Anglo American Plc and Xstrata Plc’s copper
mine in Chile, the world’s largest copper producer,
rejected a company wage offer in a vote yesterday, the
union said.
• Higher prices for base metals have seen demand
destruction happening but a possible supply disruption
may support the prices for short term.
• Copper is currently moving into a seasonally weak
consumption period.

7. • The dollar dropped against a six- currency
basket including the euro on optimism that
the global economic recovery remains intact.
• All eyes are on the European report which
may show that confidence in the region’s
outlook improved for a fifth consecutive
month.
• Aluminum in London rose 0.3 percent, nickel
gained 1 percent and tin added 0.2 percent.