Commodity Capsule: Brent crude rise; gold steady; metals slip

Commodity Capsule: Oil prices rose on Tuesday, after a drop of over 3 per cent in the previous session.

Markets are weighing worries over supply stirred by conflict in the Middle East over the dismal showing of China data.

Oil slipped amid growing uncertainty ahead of the US Federal Reserve meeting, despite an escalation of Israel's attacks on Gaza.

Weaker-than-expected manufacturing and non-manufacturing activity data from China stoked fears of slowing fuel demand.

China's official purchasing managers' index missed a forecast and dipped back below the 50-point level separating contraction from expansion.

Prices gained some support from concern over prospects for crude exports from Venezuela, riven by election uncertainty.

Gold steadied on Tuesday ahead of central bank meetings this week.

The yellow metal was set to end its best-performing month in almost a year, up over 8 per cent so far this month.

Investors eye the Fed's two-day monetary policy meeting to get insights on the US economy and policy outlook.

Spot gold had advanced to as high as $2,009.29 an ounce on Friday, the highest since mid-May, as investors bolted for safety amid the Middle East crisis.

Bank of Japan kept its key short-term interest rate unchanged at -0.1 per cent, and 10-year bond yields at around zero per cent in its October meeting, as widely expected.

Bank of England's decision is due Thursday.

Metals lose their sheen

LME Copper along with other industrial metals slipped on recovery in the dollar index and weaker-than-expected economic data in China.

The dollar index has recovered past the 106 mark.

Weaker-than-expected manufacturing and non-manufacturing activity data from China stoked fears of slowing fuel demand.

LME copper dropped to $8100, shedding $100 from its three-week high

The red metal is set for its third monthly loss, down 2 per cent so far this month.

Aluminium and Zinc are down 4-7 per cent for the month so far.

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