Commodity Capsule: Copper prices along with LME Aluminium and Zinc dipped on Tuesday. Although nonferrous metals continue to hover at their respective five-week highs.

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LME copper is hovering near $8200 a tonne, its highest since early October 2023.

The increase came despite a contraction in Europe's economy, as indicated by October's Eurozone services PMI and composite PMI.

A decrease in China's copper stocks by 3,500 metric tons to 60,200 metric tons aided price rise; Significantly lower than last year's figure of 102,200 mt.

The decline in stocks was accompanied by a decrease in East China's imported copper volume and domestic copper arrival.

China's Copper imports in October were registered at 500,168 mt, up 23.7 per cent year-on-year (YoY).

SHFE aluminium was seen trading near its highest since September 28, on supply worry in China, due to reduced production on lower hydropower resources in Yunnan Province.

Power rationing in Yunnan is impacting zinc output too.

SHFE zinc hit its highest since October 9 at 21,780 yuan a ton.

Oil prices eased on Tuesday, giving up most of Monday's gains as mixed economic data from China and winter demand worries offset the impact of Saudi Arabia and Russia extending output cuts.

Both benchmarks gained about 30 cents on Monday after Saudi Arabia and Russia reaffirmed their commitment to extra voluntary oil supply cuts until Year-End.

China's crude oil imports showed robust growth both YoY and month-on-month (MoM) in October. But the country's total exports contracted at a quicker pace than expected.

Recovery in the dollar index past 105, from a recent six-week is weighing on crude oil benchmarks.

Looking ahead on the supply side, markets are waiting to see how long Saudi Arabia and Russia are ready to rein in production.

Gold inched lower to near a week low as the dollar staged a rebound

Bullion prices were stuck in a tight range with investors staying on the sidelines ahead of comments from Federal Reserve officials including Chair Jerome Powell.

Spot gold was down to near $1,970 per ounce and U.S. gold futures fell under $1,980.

The dollar rose past 105, after hitting a six-week low in the previous session. Benchmark 10-year Treasury yields were at 4.63 per cent. 

Investors will be waiting to see if Powell, who is due to speak on Wednesday and Thursday, maintains the more dovish tone he struck after the Fed's policy meeting last week.

CBoT Soybean is hovering near a two-months high past $13.60 a Bushel amid strong Chinese demand.

ICE Raw Sugar is hovering at 12 12-year high, while Arabica Coffee is trading at over four months high past $1.70 a lb.

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