Gold prices tiptoed lower while crude oil prices rose tepidly with stocks amid a brief interlude in the broad-based risk appetite collapse defining financial markets this week (as expected). These moves’ corrective character was made plain soon enough however as sentiment soured anew in Asia Pacific trade. Third-quarter US GDP data may amplify the risk-off push. Growth is seen slowing to an annualized rate of 3.3 percent, down from the four-year high of 4.2 percent previously. That is both a large-enough comedown to rattle already jittery investors and a strong-enough print to keep Fed rate hikes on track.
On Thursday, LME copper rebounded to $6,200/mt from a two-week low of $6,113.5/mt after data showed that LME inventory decreased to a 12-year low. A robust dollar then forced it to give up some gains before the contract refreshed day-highs of $6,227.5/mt on short-covering. As shorts took profits, the SHFE 1812 contract crept to session-highs of 50,390 yuan/mt before it edged down by closing.
Oil prices fell on Friday and were heading for a third weekly loss, pulled down as Saudi Arabia’s OPEC governor said the market may become oversupplied soon and after a slump in global equities clouded the outlook for demand. Saudi Arabia’s OPEC governor said on Thursday that the oil market could face oversupply in the current quarter. Saudi Arabia Energy Minister Khalid Al-Falih said there could be a need for intervention to reduce oil stockpiles after increases in recent months
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