Gold

In the London market gold prices held near $1,720 an ounce on November 1 as stock markets climbed, indicating better appetite for assets seen as higher risk, while investors focused on US employment data due on November 2 for clues on monetary policy. US stocks rose at the open, while European shares were bolstered by a well received earnings report from Royal Dutch Shell. The dollar also surrendered gains against a currency basket after jobless claims data beat expectations.

Gold prices rallied to nearly $1,800 an ounce in early October after the Federal Reserve announced new monetary stimulus measures, which tend to help gold by fuelling fears of inflation and maintaining pressure on interest rates. It has also benefited from fears that the United States could be facing a ‘fiscal cliff if lawmakers fail to avert looming tax hikes and cuts to public spending, which are due to kick in at the start of next year.

In the Singapore market gold traded flat on October 31, shrugging off data showing China’s economy was perking up, as investors waited on the sidelines of the market for US employment data. Gold had climbed to near $1,800 an ounce in early October after aggressive stimulus measures announced by central banks including the US Federal Reserve and European Central Bank fuelled a rally. But the momentum fizzled, and gold has been stuck in a narrow range in recent days as investors stayed put ahead of the release of the US nonfarm payrolls data and the presidential election.

Gold barely moved after data was released to show that China’s economy is finally regaining traction, although the recovery remains sluggish. In addition, the global economic outlook remains uncertain as the euro zone debt crisis drags on and the US economy has yet to show signs of a substantial recovery.

Spot gold was nearly flat at $1,719.71 an ounce after hitting a one-week high of $1,725.55 in the previous session. US gold barely moved at $1,720.40.

Gold hit an 11-month high above $1,795 on October 5 after the Federal Reserve unveiled new measures to boost the US economy. Stimulus measures are seen as gold-friendly, as they stoke inflation concerns while maintaining pressure on interest rates. However, gold retreated in line with other nominally higher-risk assets such as stocks and other commodities later in the month, as euphoria from the move petered out, with confidence in its rally dented by a failure to break $1,800 an ounce.

Gold importers remained cautious, as prices continued to be supported by a weaker rupee and firm overseas markets ahead of festivals. India’s festival season peaks in November with Diwali, the Hindu festival of lights. Weddings also take place at this time, with gold jewellery part of the dowry daughters receive from their parents.

Platinum and palladium prices rose, bolstered by violence at major South African platinum mine. Spot platinum was up 1.2 per cent at $1,566.74 an ounce and palladium was up 1.9 per cent at $605 an ounce. Silver was up 1.5 per cent at $32.31 an ounce.

Oil

Oil has risen in recent days, after the storm made landfall on the US East Coast. West Texas Intermediate futures gained as much as 1.1 per cent after advancing 0.2 per cent on October 30. Philadelphia Energy Solutions’ 355,000 barrel-a-day Pennsylvania refinery is restoring operations and NuStar Energy LP (NS)’s 74,000 barrel-a-day plant in Paulsbora, New Jersey, will be at full production on October 31, the companies aid. Seven refineries with a total capacity of 1.29 million barrels a day had shut or reduced operations because of Sandy.

Seven refineries with a total capacity of 1.29 million barrels a day shut or reduced operations because of Sandy. Production starts at Phillips 66 (PSX)’s 238,000 barrel a day Bayway refinery in Linden and Hess Corp. (HES)’s 70,000 barrel a day Port reading plant depend on post-storm assessments, the companies said.

Crude for December delivery rose as much as 91 cents to $86.59 a barrel in electronic trading on the New York Mercantile Exchange, and was at $86.32. Prices gained 14 cents on October 30 to $85.68, the highest close since October 26. Futures are down 6.4 per cent in October and 12.7 per cent this year.

Brent for December settlement rose 54 cents to $109.62 a barrel on the London-based ICE Futures Europe Exchange. The European benchmark crude’s premium to the West Texas Intermediate contract was at $23.30, from $23.40 on October 30.

About 308,000 barrels a day of refining capacity remained shut in New Jersey. Production starts at Phillips 66’s 238,000 barrel a day Bayway refinery in Linden and Hess Corp. (HES)’s 70,000 barrel a day Port Reading plant depend on post-storm assessments, the companies said.

Gasoline for December delivery gained 0.52 cents to $2.6355 a gallon in New York. The contract rose 1.48 cents to $2.6303 on October 31 while the November futures, which expired, advanced 3.3 cents to $2.7618.

US crude inventories probably increased by 1.8 million barrels to 376.9 million in the week ended October 26, before Sandy struck. That would be the highest level since July 20.

Output probably kept climbing after reaching 6.61 million barrels a day in the week ended October 19, the most since May 1995, the survey shows. Imports grew 5.7 per cent in the same week for a fourth consecutive increase. Shipments may end their upward trend this week after Sandy shut terminals and closed refineries.

Gasoline stockpiles may have gained 850,000 barrels to 199.4 million, according to the survey. Inventories of distillate fuel, a category that includes diesel and heating oil, probably fell 1.4 million barrels to 116.3 million.

Oil production by Opec, the supplier of about 40 per cent of the world’s crude, declined in October as Iranian output dropped to the lowest level in 22 years a separate Bloomberg survey showed.

Output by the 12-member Organization of Petroleum Exporting countries slipped 87,000 barrels, or 0.3 per cent, to an average 32.092 million barrels a day from a revised 32.179 million in September, according to the survey of oil companies, producers and analysts.

Copper

IN the London market copper rose on November 1, helped by data that showed a glimmer of renewed vigour in big metals consumer China, other Asian economies and the United States, but gains were tempered by concerns about demand and Europe’s grinding debt crisis. Data over the past month has shown the health of the global economy remains fragile, with retail sales and the housing market pointing to an improvement in the United States but Europe is still struggling.

Copper hit a two-month low on October 29 after shedding 9 per cent since touching a peak of $8,422 on September 19 following a burst of buying linked to central bank stimulus measures. So far this year, copper is up 4.6 per cent.

A report by the International Wrought Copper Council saying the global market for refined copper is expected to swing into a 281,000 tonne surplus in 2013 from a deficit this year helped to cap price gains.

A day earlier copper had risen in the London market copper buoyed by a softer dollar, but gains were limited with US stock markets falling after a two-day closure for the storm Sandy and as metals investors stayed wary about demand from China.

Three-month copper on the London Metal Exchange ended at $7,759.50 a tonne, up 0.51 per cent from October 30, close, having earlier risen by 1.55 per cent to mark the biggest gain in six weeks. The metal was still on track for a monthly loss of around 5 per cent, its steepest drop since May. Copper, which has given up nearly all of a September rally that followed central bank stimulus announcements, was bolstered by the softer dollar, which makes metals priced in the US unit cheaper for traders holding other currencies.

Prices for the metal rallied nearly 8 per cent in September, fuelled by the third round of quantitative easing (QE) by the US Federal Reserve, the promise of bond buying by the European Central Bank (ECB) and stimulus measures in Japan and China.

Copper then weakened in October as expectations that real demand for metals would improve failed to materialize. It is down close to 6 per cent in October and is trading up just 1.7 per cent in the year to date.

Fundamentals have turned a bit weaker for base metals, as slower economic growth in China weighed on its metals demand, and with metals stocks rising especially for aluminium and copper.

Benchmark aluminium closed at $1,909, from $1,897 on October 29.