Commodities: Gold futures rise ahead of peak demand season in India
The commodities complex saw some mixed trends on Monday, although there was clear selling pressure in some of the most economically sensitive areas of the market, despite an absence of any significant economic data releases.
Front month West Texas crude futures ended the day lower by 43 cents at $82.75 per barrel on the NYMEX. That came despite news that Chinese refiners processed 9.1% more tonnes of crude in September than a year earlier, roughly some 42.02m metric tonnes.
Three-month copper futures lost 1.19% in LME trading, ending the day at $6,560 per metric tonne, ahead of the release of Chinese GDP figures the next day.
Gold futures for December delivery on COMEX were to be seen just marginally lower at $1,320.40 per ounce by the end of trading.
Significantly, India’s finance ministry was reported to have asked New Delhi to reinstate curbs on imports of bullion after foreign trade figures for September revealed a 450% increase in purchases of the ‘yellow metal’. The petition was reportedly denied by the Reserve Bank of India.
Domestic gold prices in India remain 7.3% below year-ago levels just as sales are set to ramp up for the festival and wedding season. The sub-continent is the world’s second buyer of gold, behind the People’s Republic of China.
Corn futures contracts for December delivery gained 0.7% to $3.505 a bushel on the Chicago Board of Trade (CBoT). Wheat for delivery in December added 0.1% to $5.1375 a bushel in CBoT trading.