Gold prices extended recovery towards US$1,290/oz mark, helped by slight retracement in US dollar basket of currencies. Investors also derived cues from deterioration in US-Turkey diplomatic relations. Nevertheless, we reiterate that upside in yellow metal remains confined given the policy normalisation narrative on both sides of the Atkantic and ensuing rising sovereign bond
LME Copper surged to one month high after Congo government ordered a joint venture of Chinese investors to stop exporting raw copper and cobalt from its mies because of their low value in international markets. Mining ministry stated that exports of raw ore is not yielding decent returns on investment, effectively hampering the country’s ability to pay back Chinese credit. Congo seems to be replicating the policy of Philippines and Indonesia and it needs to be seen how the situation pans out on this front.
CRUDE OIL :
Oil futures rebounded from the lows, as Saudi Arabia trimmed crude allocations for November by 560,000bpd, while Iraq is reported to be now abiding by its OPEC production target. Meanwhile, OPEC Secretary-General stated that fresh consultations were now underway for an extension of the agreement beyond March of 2018.