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Commodities trading mostly higher amid weak dollar

Comex Gold price moderately higher on Tuesday after bouncing off two-week lows of $2,325 per troy ounce supported by the weaker US Dollar and safe-haven flows amid the ongoing geopolitical tensions in the Middle East. Federal Reserve Bank of Minneapolis President Neel Kashkari said policymakers should take their time in monitoring whether inflation is slowing enough to warrant interest-rate cuts.

Federal Reserve Bank of Cleveland President Loretta Mester said the US central bank should consider ways to better communicate to the public how economic conditions will affect future policy decisions.

Crude oil edge up on Tuesday extending gains from previous session, supported by expectations of strong fuel demand from the US during summer, and increased geopolitical risks after an Israeli airstrike resulted in the deaths of dozens of civilians in Rafah and a cross-border clash left an Egyptian officer dead.

OPEC is widely expected to prolong current supply curbs into 2H 2024, in an effort to stave off a surplus and support crude prices already contending with fragile Chinese economic outlook and rising non-OPEC supplies.

European natural gas prices declined as robust inventories and ample flows offset supply risks. Benchmark futures reversed their bullish streak, sliding as much as 3% on Tuesday.

LME Base metals rose after four straight sessions of losses, supported by interest rate cut prospects, a weaker dollar and China's property easing measures. Financial hub of Shanghai lowered down-payment ratios and the minimum mortgage threshold, as bigger Chinese cities follow through on the central government’s aid for the property sector.

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