Commodity Capsule: Brent crude oil edge higher; gold extends losses

Commodity Capsule: Gold prices extended losses on Tuesday, and hovered near a three-week low, as worries over a wider Middle East conflict subsided, boosting investors' risk appetite and lowering bullion's safe-haven demand.

US gold futures were shed over $20 to $2,320 per ounce.

Tehran downplayed Israel's retaliatory drone strike against Iran, in what appeared to be a move aimed at averting regional escalation.

Policymakers including US Federal Reserve Chair Jerome Powell last week backed away from providing any guidance on when interest rates might be cut, saying instead that monetary policy needs to be restrictive for longer.

Markets are awaiting the release of the March personal consumption expenditure data - the Fed's preferred inflation gauge - to further ascertain the trajectory of monetary policy.

European Central Bank officials are sticking to plans to cut interest rates multiple times this year, even as higher US inflation delays a pivot to looser policy by the Fed.

Prices of nonferrous metals fell on Tuesday as traders and investors in Asia exercised caution following sessions of strong price rallies, partly driven by speculative trading.

Copper on the London Metal Exchange fell over $100 to below $9,750/metric ton. June copper contract on the Shanghai Futures Exchange fell two per cent to 78,540 yuan a ton.

LME copper is still up 14 per cent so far this month. It inched close to the resistance level of $10,000 in the previous session.

SHFE copper has been breaking fresh record highs almost every session in April.

Speculative trading, hedges against sticky inflation, supply disruptions in some metals, and some positive macroeconomic data have fuelled the rally in metal prices.

LME cash aluminium was traded at a premium of $27.09 a ton over the three-month contract, the highest premium since June last year, indicating tightness of near-term supply.

LME cancelled warrants of aluminium have surged to 348,000 tons, the highest since February 2022.

Cancelled warrants of lead leaped to 129,650 tons, the highest since June 2013.

Oil prices edged higher on Tuesday, after falling in the previous session, as investors continued to assess risk from geopolitical concerns in the Middle East.

Global benchmark Brent crude oil futures traded over $87/barrel. US WTI crude futures gained past $82 a barrel.

Both benchmarks fell in the previous session on signs that the recent escalation of tensions between Israel and Iran had little near-term impact on oil supplies from the region.

ANZ highlighted US approval of new sanctions on Iran's oil sector that broaden current sanctions to include foreign ports, vessels, and refineries that knowingly process or ship Iranian crude.

Investors are waiting for the release of US GDP figures and March personal consumption expenditure data.

Catch the latest stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.