Gold saw profit taking for a second day after reaching a record high last week as the US dollar strengthened against other currencies. Hedge fund managers and large speculators decreased their net long positions in gold as of October 12th. Copper and other base metals witnessed profit taking due to the stronger dollar and speculation the Federal Reserve may provide less monetary stimulus. Crude oil saw selling pressure for three days on speculation a slowing US housing market will weaken oil demand, while gasoline stockpiles fell and refinery operations decreased.

1. Commodity noon session

2. Bullion Gold witnessed profit booking continuing for the second day after reaching a record last week. US dollar strengthening against a basket of major traded currencies eroded the appeal for commodities as an alternative investment. Building numbers in US will be keenly watched, as production grew at a faster pace for the seven month. Hedge fund managers and other large speculators decreased their net long positions in the week needed Oct 12th. According US commodity futures commission data.

3. Bullion Net long positions fell by 3,746 contracts or 1 percent, from a week earlier. China is forecast to produce 340 metric tons of Gold this year higher than 2009 figures.

4. Base metals Copper witnessed some profit booking during the US trading session and the same trend continued during the Asian trading session also. Profit booking was witnessed in base metals for as dollar strengthened and on speculation the federal reserve may add less monetary stimulus than expected. Copper fell by 0.9%, Aluminium dropped by 0.5%, Zinc by 1%, Lead by 1.4% and Tin dropped 1.8%. Markets will be keenly following the industrial production numbers and NAHB housing market index from US.

5. Crude oil Crude oil witnessed selling pressure for the third day on speculation that a slowing housing market will push US demand for Crude oil to the weaker side. A report last week showed that ,Fuel consumption in the worlds largest oil user fell 0.7% to 18.3 million barrels a day. Refineries operated at 81.9 percent capacity, the lowest rate since March. Gasoline stockpiles fell 1.77 million barrels to 218.20 million last week as imports and outputs decreased.

6. Crude oil Crude oil is expected to consolidate in between the 80$-84$ mark. US dollar climbed 0.6% during the Asian trading session.