Commodity Research Evening Track by Kotak Securities Ltd
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Metals held steady awaiting FOMC meeting minutes
COMEX gold prices held steady near record highs ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole, which may provide insight into the central bank's interest rate cut trajectory.
Gold futures has been hitting successive all-time highs, reaching $2,570.80/oz on Tuesday, as the dollar fell on speculation of steep rate reductions. US jobless claims figures due Thursday may shed further light on the Fed's rate-cut plans.
Meanwhile, holdings of the SPDR Gold Trust, the world's largest gold-backed ETF, jumped to a seven-month high of 859 tons on Monday, indicating improving financial investment demand.
WTI Crude Oil extended its three-day decline to trade near $73 after an industry report showed a second weekly increase in US crude stockpiles. The American Petroleum Institute reported a 347,000-barrel expansion in crude inventories last week.
LME base metals continued to trade sideways to positive, driven by a weaker dollar and growing speculation of significant rate cuts by Jerome Powell at Jackson Hole. LME Copper traded marginally higher near $9,241/tonne, as markets assessed poor demand among top consumers.
Central bankers are gathering in Wyoming to discuss monetary policy and the global economy, with Powell's address on Friday being the key focus.
European natural gas futures traded around €38/MWh, down from an early-month peak of over €40, as Europe's gas reserves reached 90% capacity, surpassing the EU's November target.
Traders will be watching FOMC meeting minutes and US data, including unemployment claims, for clues on the Fed's intentions.
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