Commodity Capsule: Brent crude oil edge higher; gold largely range bound

Commodity Capsule: Brent crude oil edge higher; gold largely range bound

Commodity Capsule: Global oil prices edged up on Thursday, recovering from two consecutive sessions of decline.

Investors reassessed the latest US crude oil and gasoline inventories data and returned to buying mode.

Brent crude futures June contract edged towards $86. May contract expires on Thursday.

bUS WTI crude futures for May delivery edged close to $82 a barrel.

In the prior session, oil prices were under pressure after US crude oil and gasoline inventories rose unexpectedly last week.

Crude inventories rose by 3.2 million barrels to 448.2 million barrels in the week ended March 22-- EIA.

Recent disappointing inflation data affirms the case for US Federal Reserve to hold off on cutting its short-term interest rate target.

Most base metals prices increased on Thursday, boosted by signs of stabilisation after China's profits at industrial companies improved in the first two months.

Copper on the London Metal Exchange rose past $8,900 per metric ton

China's industrial firms posted higher profits in the opening months of the year, reinforcing signs that an economic recovery was gaining traction despite persistent sluggishness in the property sector.

Meanwhile, China's central bank set the yuan at a much stronger fixing than markets had expected, which could support the purchasing power of Chinese metals buyers.

Inventory build-up in most base metals in China has capped gains in metal prices.

China's top copper smelters decided not to set a guide price for treatment and refining charges for copper concentrate processing in the second quarter of 2024, on Thursday.

The decision not to issue guidance prices for the second quarter of the year follows supply shortages and a sharp drop of TCs in the spot market.

Gold prices are largely range-bound on Thursday

US dollar and bond yields ticked higher after comments from Federal Reserve official on interest rate cuts, while investors looked forward to more economic data for policy clues.

US gold futures hovering close to $2,200 per ounce.

Fed Governor Christopher Waller said on Wednesday recent disappointing inflation data affirms the case for the US central bank holding off on cutting its short-term interest rate target.

The dollar holds past the 104 mark near a five week high, while yields on 10-year Treasury notes also rose.

Investors now look forward to the US Core Personal Consumption Expenditure price index report due on Friday to gauge when the Fed may begin cutting interest rates.

Also on investor radar is the weekly US initial jobless claims report due later in the day.

Traders are pricing in a 62 per cent probability that the Fed will begin cutting rates in June, down from a 70 per cent chance seen on Wednesday.

ICE robusta coffee futures gained nearly three per cent on Wednesday to record high levels.

Buoyed by renewed focus on supply shortages in top producers.

May robusta coffee hit a peak of $3,599 for the highest level since the current form of the contracts started trading in 2008.

Dealers said farmers and local traders in Vietnam remain in no rush to sell, preferring to bet on even higher prices.

There is little availability of robusta coffee in Brazil until the next harvest starts in April.

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