Commodity Capsule: Gold prices rise; Brent crude oil strutter, metal rangebound

Commodity Capsule: Metals are largely rangebound on Friday, helped by expectations of Chinese economic policy support amid worries of supply disruptions due to shipping constraints in the Red Sea.

Copper on the London Metal Exchange is holding past $8,600/metric ton; Hovering at three-week highs and headed for weekly gain for 2nd straight week.

Red metal is boosted by the prospect of lower interest rates in 2024, which is expected to boost global economic activity and shore up copper demand.

An increasing push into green energy and electric vehicles is expected to boost demand, while copper supplies are expected to tighten amid mine closures in Peru and Panama.

Five of China's largest state banks have cut interest rates on some deposits from Friday, sparking hopes of a fiscal stimulus from China

Global zinc market deficit eased to 52,500 metric tons in October from a deficit of 62,000 tons in September-- International Lead and Zinc Study Group.

For the first ten months of 2023, ILZSG data showed a surplus was 295,000 tons versus a deficit of 33,000 tons in the same period of 2022.

Gold prices rose on Friday, extending gains from the prior session after a mild downgrade to 3Q US GDP and soft labor market data put the dollar at 5-month lows.

Focus is now squarely on key inflation data due later in the day for more affirmation that the Federal Reserve will cut interest rates in 2024.

Friday’s gains saw spot gold come close to breaking out of a $2,000-$2,050/ounce trading range.

Gold and Silver prices are trading near three-week highs and were set for the second consecutive weekly rise.

All eyes are now on the November core personal consumption expenditure index report.

Oil prices are strutting around the key $80 a barrel mark on Friday as tensions persisted with Houthi attacks on ships in the Red Sea

Although Angola's decision to leave OPEC raised questions over the group's effectiveness in supporting prices.

Both the contracts are up over 4 per cent for a second consecutive week; the Best weekly performance since mid-August.

Maritime carriers are avoiding the Red Sea due to vessel attacks carried out in support of Palestinians by the Yemeni Houthi militant group, causing global trade disruptions through the Suez Canal.

Germany's Hapag-Lloyd and Hong Kong's OOCL were the latest companies to say they would avoid the Red Sea by rerouting ships or suspending sailing.

India will allow the import of edible oils at lower import tax rates until March 2025 to keep a lid on local prices.

The lower import duty structure on crude palm oil, crude sunflower oil, and crude soy oil was originally set to expire in March 2024.

However, as per the order, refiners can now continue to import at lower duties until March 2025.

Robusta Coffee prices rallied to a new all-time high past $3,000/T after USDA cut its 2023/24 global robusta production estimate to 74.1 million bags from June's estimate of 78 mn bags. 

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