Post by priyaagrawal07 on Sept 9, 2015 14:54:40 GMT 8
GOLD: Markets are now eyeing the Fed's next policy meeting on Sept. 16-17 for clues. Gold is trading at 1122 paying little attention to the rally in the equities markets. The Dow soared as much as 350 points on Tuesday but gold traders seem unaware. Gold prices are still down from about $1,160 an ounce in late August.
COPPER: Supportive factors, including the September-October peak demand season, news of cut in copper output and China’s pro-growth measures, will support SHFE copper in near future. Glencore has reduced its production capacity leads to improving sentiment. Copper gained after commodities group Glencore announced plans to shut down loss-making mines to help to reduce a glut of supply that has weighed on prices.
CRUDE OIL: Oil markets remain weak as oversupply keeps biting. On the supply side, recent speculation that some producers were willing to cooperate in cutting output in support of prices was dealt a blow by Russia and Mexico this week, who both said they would not cut.
On Tuesday, the Organization of the Petroleum Exporting Countries notified Indonesia that the country may rejoin the group as a member when OPEC next meets in December.
Disappointing economic data out of China ignited new stimulus hopes from the Chinese government. That helped buoy markets around the globe and sent many investors back into securities.
Bearish investors scrambled to close out positions by buying futures, but analysts said it was uncertain whether Glencore's move to close some African copper operations for 18 months would create a trend.
"It's probably not enough to see prices go up (substantially), but it certainly supports the market," said Grant Spore, head of metals research at Deutsche Bank in London. "It also ensures that copper is probably not going to fall in the same way that iron ore and met (metallurgical) coal have done."
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