Commodity Capsule: Brent crude edge higher; gold rises

Commodity Capsule: Most nonferrous metals prices gained on Friday, with the London aluminium contract set for a sixth straight weekly gain on supply concerns amid sanctions on Russian metals.

Copper on the London Metal Exchange hit a two-year high earlier in the session at $9,843.

Copper on the Shanghai Futures Exchange advanced to an all-time high of 79,840 yuan earlier in the session.

LME aluminium increased to $2,652 a ton, hovering two-year high

LME on Saturday banned from its system Russian metal produced on or after April 13 to comply with new U.S. and UK sanctions imposed for Russia's invasion of Ukraine.

On a weekly basis, LME aluminium was up 6 per cent, on track for the sixth straight week of gain. LME copper was up 3 per cent.

CITI RESEARCH expects copper's price rally to continue over the coming Three Months, With Prices Likely To Get Up To $10,500/t.

Gold prices rose on Friday, on track for fourth weekly gain, with investors gravitating towards safe-haven assets as political uncertainty in the Middle East overshadowed pressures from the prospect of higher-for-longer US interest rates.

US gold futures edged past $2,400 per ounce. Bullion rose two per cent so far this week.

The US announced new sanctions on Iran, targeting its unmanned aerial vehicle production after it attacked Israel.

Federal Reserve policymakers have rallied around the idea of holding borrowing costs where they are until probably far into the year, given slow and lumpy progress on inflation and a still-strong US economy.

The number of Americans filing new claims for unemployment benefits was unchanged at low levels last week, pointing to continued labor market strength.

Atlanta Federal Reserve Bank President Raphael Bostic said that if inflation progress stalls, central bankers would need to consider an interest rate hike.

Oil prices jumped nearly $3 a barrel on Friday in reaction to reports that Israeli missiles had struck a site in Iran, sparking concerns that Middle East oil supply could be disrupted.

Benchmark contracts surged more than $3 then eased slightly. Brent futures are holding past $89/barrel. WTI climbed past $84.66 per barrel.

News agencies said explosions were heard at an airport in the Iranian city of Isafahan but the cause was not immediately known. 

Several flights were diverted over Iranian airspace, CNN reported.

Last weekend Iran launched hundreds of drones and missiles in a retaliatory strike after a suspected Israeli strike on its embassy compound in Syria. 

Most of the drones and missiles were downed before reaching Israeli territory, with minimal damage and casualties.

Geopolitical risk premium in oil prices had been unwinding this week on the perception that any Israeli retaliation to Iran's attack would be moderated by international pressure.

US announced sanctions on VenezuelaIran, another OPEC member, targeting its unmanned aerial vehicle after the country's drone strike on Israel last weekend.

Goldman Sachs on Thursday revised its Brent crude oil price forecasts, projecting $86 for the second half of 2024, up from $85 previously, and $82 for 2025, up from $80.

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