2. Bullions
• Gold prices are expected to advance for a third day on
increased investment demand and physical demand in
spite of a bounce back witnessed in US dollar.
• Good physical buying was witnessed around the 1330$
levels as demand from consumption oriented
economies like India is expected to rise during the
month of Oct and November.
• UBS AG said its gold sales to India, the world’s largest
buyer, were the third-highest this year on Oct. 22. That
day, gold for immediate delivery dropped to $1,315.45
an ounce, the lowest price since Oct. 5.
3. Bullions (Contd..)
• The Dollar Index, which tracks the currency
against a basket of six counterparts including
the yen, climbed as much as 0.3 percent,
paring yesterday’s 0.5 percent drop. Gold
typically moves inversely to the U.S. currency.
• Silver for immediate delivery dropped 0.2
percent, Spot palladium climbed 0.3 percent,
Platinum gained as much as 0.5 percent the
highest price since Oct 15th.
4. Crude oil.
• Crude oil rose for a second day as the dollar slumped
to a 15-year low against the yen, bolstering the appeal
of raw material commodities like Crude as an
alternative investment.
• On the supply side, Workers at three French oil
refineries voted to return to work as a contested
pension bill neared parliamentary approval.
• Oil will continue to track the US dollar movement
during the week with a keen eye on the equity
markets.
• The Organization of Petroleum Exporting Countries will
increase shipments by 1.2 percent in the four weeks to
Nov. 6, according to Oil Movements, which monitors
tanker charters.
5. • Saudi Arabia produced 8.25 million barrels of
crude oil a day in September, exceeding its quota
by 199,000 barrels a day, according to a
Bloomberg News survey of companies, producers
and analysts.
• Hedge-fund managers and other large
speculators decreased their net-long position in
New York crude-oil futures in the week ended
Oct. 19. Net long positions fell by 15,097
contracts, or 8.5 percent, from a week earlier, ,
the Commodity Futures Trading Commission said
last week.
6. Base metals.
• Copper advanced to the highest level in more than 27
months, gaining for a third day, as investors sought
alternatives to a weakening dollar. Zinc rose to the highest
price in nine months.
• Copper for three-month delivery gained as much as 0.4
percent during the Asian trading session, which is the
highest levels since July 2008.
• Base metals are witnessing lesser spot market demand and
the markets are currently driven by the US dollar weakness
and inflationary pressures.
• The US dollar was little changed after falling to a one-week
low yesterday against a six-currency basket including the
euro and yen, on speculation increased government bond
purchases by the Federal Reserve may weaken the
currency.
7. • Strike threat is looming over the worlds fourth
largest copper mine in Chile as unions have
called on workers to reject latest wage offer.
Employees will be voting tomorrow on the
same.
• Zinc and Lead are also facing supply constrains
as China’s third-largest zinc producer,
suspended output at its biggest zinc and lead
smelter.
