Commodity Capsule: Gold extends record run; Brent crude oil gains; copper rises

Commodity Capsule: Gold prices extended a record run on Wednesday

Concerns of rising inflation boosted demand for gold as a hedge, with bullion traders shrugging off doubts over an imminent US interest rate cut and rising Treasury yields.

Bullion has hit record highs consecutively since Thursday. US gold futures registered a new all-time high past $2,308/Oz.

Federal Reserve policymakers on Tuesday said they think it would be "reasonable" to cut US rates three times this year, despite recent strong economic data.

US manufacturing unexpectedly rebounded, with the rise in raw materials prices triggering fears that inflation could resurge.

Gold has gained more than 1 per cent so far this year and is set for 8th consecutive daily rise.

Oil prices extended gains on Wednesday

A larger-than-expected fall in US crude inventories and escalating geopolitical tensions raised investor worries about tighter supplies.

Brent futures for June delivery pushed past $89 per barrel, while US WTI crude futures for May climbed past $85/barrel.

Both Brent and WTI had climbed to its highest since October.

US crude oil inventories fell by 2.3 million barrels last week, higher than the 1.5 million barrel drop forecast in a Reuters poll.

US government data is due later on Wednesday.

On the geopolitical front, a Ukrainian drone struck one of Russia's biggest refineries in an attack Russia initially said it repelled.

Russia has been contending with Ukrainian attacks on oil refineries and has also attacked Ukrainian energy infrastructure.

Iran vowed revenge against Israel for airstrike at its embassy compound in Damascus, raising the risk of further escalation in the Middle East conflict.

Copper rose on Wednesday amid a bullish demand outlook raised by positive manufacturing data from major economies, while supply worries aided prices.

Copper on the London Metal Exchange was holding past $9,000/metric ton.

MCX copper has surged past Rs 770, hovering at April 2023 highs.

May copper on the Shanghai Futures Exchange climbed to 73,490 yuan/ton, up for a fifth session in a row.

China's manufacturing activity expanded for the first time in six months in March, an official survey showed last week.

Its manufacturing activity expanded at the fastest pace in 13 months, with business confidence hitting an 11-month high.

Supporting the market was shortages of copper concentrate that triggered Chinese smelters to plan output cuts.

SHFE will be closed on Thursday and Friday for the Qingming holiday.

LME Aluminium has surged to 1 year high, inches away from $2400.

Aluminium's gains were driven by concerns surrounding sluggish recovery in production in China's Yunnan province.

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