Commodity Capsule: Brent crude edge higher; gold recovers; copper advances | Watch video

Commodity Capsule: Gold prices recovered from overnight losses on Thursday, and remained below recent peaks as fears of higher-for-longer interest rates and pressure from a strong dollar remained in play.

The yellow metal had surged to record highs last week as safe-haven demand ramped up after Iran launched a strike against Israel.

But fears of a greater conflict cooled this week as Israel did not retaliate immediately over the strike.

Pressure from the dollar eased slightly this week as the greenback retreated from over five-month highs on Wednesday.

The prospect of higher-for-longer interest rates saw gold take little advantage of this weakness.

Gold saw a heavy degree of profit-taking this week after hitting record highs.

Further gains in gold remain in doubt in the face of higher-for-longer US interest rates.

Strong inflation data and hawkish signals from the Federal Reserve saw traders largely price out expectations for a June rate cut by the central bank.

Copper, aluminum advance on dollar weakness, China imports.

Industrial metal prices rose back to recent peaks on Thursday

China's imports of unwrought aluminium and products jumped 90% at 380,000 MT in March.

China's unwrought copper imports climbed 16 per cent year-on-year (YoY) in March.

Metals are benefitted from the softer dollar and bets that US economic resilience will help underpin metal demand.

Copper futures on the London Metal Exchange edged towards $9,600 a ton- close to a two-year high.

Aluminum futures rose to 15 month high, Zinc is hovering one year high

Industrial metal prices surged in recent weeks on expectations of tighter supplies, after the US and its allies imposed stricter sanctions on Russian metal exports.

Copper prices were boosted by several major Chinese smelters signaling they would reduce production.

Oil prices edge higher after a three per cent drop in the previous session.

The market remains concerned about demand this year and on signs that wider conflict in the Middle East-producing region could be avoided.

Brent futures were holding near $87.50/barrel, while WTI crude futures traded close to $83 a barrel.

Crude oil slipped on signs that fuel demand this year is lower than expected amid flagging economic growth in China and as oil inventories in the US rose.

Oil inventories rose by 2.7 million barrels to 460 million barrels in the week ending April 12, the Energy Information Administration said.

JP Morgan highlighted on Tuesday that worldwide oil consumption so far in April has been 200,000 barrels/day below its forecast, averaging 101 million bpd.

Investors are discounting the chance that Israel will strongly retaliate against Iran's missile and drone attack on April 13. 

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