Commodity Capsule: Oil prices rose on Wednesday, gold edge higher; copper range-bound

Commodity Capsule: The International Energy Agency (IEA) raised its oil demand growth forecast for this year. China's October economic activity perked up as industrial output grew at a faster pace and retail sales growth beat expectations IEA joined OPEC+ in raising the oil demand growth forecast for this year, despite projections of slower economic growth in many major countries. Expectations that the US Federal Reserve could cut interest rates next spring sent the US dollar down to a 2.5-month low against a basket of other currencies.

Gold prices held firm on Wednesday following a sharp rise in the last session Slowing inflation in the US bolstered the view that the Federal Reserve might be done with raising interest rates.

Global gold surged $35 in the last two sessions to $1970 an ounce US consumer prices were unchanged in October as Americans paid less for gasoline, and the annual rise in underlying inflation was the smallest in two years.

On a y/y basis, the US Consumer Price Index (CPI) increased 3.2 per cent after rising 3.7 per cent in September. Softer-than-expected inflation print sent the dollar index to over a two-month low.  Benchmark US 10-year Treasury yields slid to a near two-month low.

Copper on Wednesday traded close to a five-week peak scaled in the previous session Dollar weakened after softer US inflation data fuelled bets that the Federal Reserve might be done hiking interest rates. Copper on the London Metal Exchange was hovering at $8,231/metric ton, after hitting its highest since October 2 on Tuesday.

The dollar stuttered at broadly lower levels after slumping overnight. China's October economic activity perked up as industrial output grew at a faster pace and retail sales growth beat expectations.

China's property sales fell at a faster pace in October and investment in real estate slumped, suggesting that the sector is yet to emerge from its decline. 

US soybean futures hit a 2-1/2-month high on Wednesday, with concerns that unfavourable weather will shrink harvest in Brazil  Soybean contract on the Chicago Board of Trade touched past $13.92, the highest since Aug. 30, in the previous session Dryness in northern and central Brazil and excessive rains in southern areas threaten soy production.

Rally to contract highs in CBOT soymeal futures has lifted soybeans. Demand for U.S. soymeal has benefited from low production in Argentina. US soybean crush likely hit an all-time monthly high in October