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Commodity noon session
Bullion Gold advanced after correcting the most in three months yesterday as China raised interest rates and dollar appreciated.  Gold fell 2.9% yesterday from the all time high levels of 1387.35$. Gold had gained on expectation that Federal Reserve will announce asset purchases next month to revive economy. Chicago Fed President Charles Evans said yesterday the bank would need to buy securities on a large scale several times to carry out his preferred strategy of aiming to raise inflation temporarily.
Bullion China’s central bank yesterday raised its borrowing cost from 5.31% to 5.56%, for the first time since 2007. This move is expected to be supportive for commodities for a longer term horizon.
Base metals Copper witnessed selling pressure coming in from the key resistance levels after China raised borrowing costs for the first time since 2007. Some buying interest was seen returning during the Asian trading session a weak US dollar out weighted the Chinese decision. Aluminum, Zinc and Nickel also rose along with copper prices.  Chinese central bank announced yesterday that I will increase benchmark lending and deposit rates today.  Base metals are expected to follow the US dollar movement and global economic conditions.
Base metals Markets are keenly waiting the CPI data from China tomorrow. Chinese consumer prices probably climbed 3.6% in September from a year earlier and economy grew by 9.5% in the third quarter.
Crude oil Crude oil witnessed selling interest coming in after the Chinese rate hike decision which saw the prices biggest loss in eight months.  Futures rebounded by 1% after declining 4.3 percent yesterday, during the Asian trading session.  Chinese central bank yesterday raised borrowing costs for the first time since 2007.  Steps taken by the Chinese Government earlier this year has not impacted the Chinese demand as the countries Crude imports climbed to a record 23.29 million metric tons in September, surpassing June highs.
Crude oil American petroleum institute data release shoed that the inventory levels have increased by 2.3 million barrels last week. A U.S Energy department report today is expected to show oil stock piles rose by 1.5 million barrels last week.

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Commodity Noon Session

  • 2. Bullion Gold advanced after correcting the most in three months yesterday as China raised interest rates and dollar appreciated. Gold fell 2.9% yesterday from the all time high levels of 1387.35$. Gold had gained on expectation that Federal Reserve will announce asset purchases next month to revive economy. Chicago Fed President Charles Evans said yesterday the bank would need to buy securities on a large scale several times to carry out his preferred strategy of aiming to raise inflation temporarily.
  • 3. Bullion China’s central bank yesterday raised its borrowing cost from 5.31% to 5.56%, for the first time since 2007. This move is expected to be supportive for commodities for a longer term horizon.
  • 4. Base metals Copper witnessed selling pressure coming in from the key resistance levels after China raised borrowing costs for the first time since 2007. Some buying interest was seen returning during the Asian trading session a weak US dollar out weighted the Chinese decision. Aluminum, Zinc and Nickel also rose along with copper prices. Chinese central bank announced yesterday that I will increase benchmark lending and deposit rates today. Base metals are expected to follow the US dollar movement and global economic conditions.
  • 5. Base metals Markets are keenly waiting the CPI data from China tomorrow. Chinese consumer prices probably climbed 3.6% in September from a year earlier and economy grew by 9.5% in the third quarter.
  • 6. Crude oil Crude oil witnessed selling interest coming in after the Chinese rate hike decision which saw the prices biggest loss in eight months. Futures rebounded by 1% after declining 4.3 percent yesterday, during the Asian trading session. Chinese central bank yesterday raised borrowing costs for the first time since 2007. Steps taken by the Chinese Government earlier this year has not impacted the Chinese demand as the countries Crude imports climbed to a record 23.29 million metric tons in September, surpassing June highs.
  • 7. Crude oil American petroleum institute data release shoed that the inventory levels have increased by 2.3 million barrels last week. A U.S Energy department report today is expected to show oil stock piles rose by 1.5 million barrels last week.