Asian central banks appear to follow India's big purchases of gold from IMF considering the availability cheaper domestically. The relative illiquidity of gold, the small size of the gold market and difficulty buying in large quantities may deter central banks from emulating the Reserve Bank of India, which last month bought 200 tonnes of gold from the International Monetary Fund at an average price of $1,045 an ounce. IMF is expected to sell another 200 tonnes of gold to Japan, South Korea and Australia Central banks as they have shown little recent inclination to buy gold overseas.
Crude Oil prices went up in the morning session over the lingering hope that U.S. October employment report will be on an optimistic note. Prices are hovering around $80 a barrel for much of the last three weeks as weak fundamentals were neutralized by strong support from a weaker dollar and economic recovery hopes.
Despite data showing jobless claims in the US fell to a 10-month low last week and non-farm productivity rose at its fastest pace in six years in the third-quarter, oil prices fell nearly 1% yesterday as high fuel inventories in the United States raised worries about a recovery in oil demand.
Copper remained steady in the morning session as support from overnight positive U.S. data was offset by a strong rupee and rising inventories in the London Metal Exchange. U.S. business productivity grew at its fastest pace in six years in the third quarter and new jobless claims fell to a 10-month low last week, suggesting the labour market might bottom out.
All eyes are set on U.S. employment report. The U.S. economic data due on Friday includes October's non-farm payrolls and wholesale inventories figures, and will shed light on the health of the world's largest economy.
Courtesy: Religare Commodities
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