Commodities: Copper and gold edge higher after Chinese rate cut

The unexpected rate cut out of China, together with very dovish remarks out of ECB president Mario Draghi, provided a bid for commodities.

So much so in fact that gold futures were able to eke out a rise despite the strengthening seen in the US dollar.

Gold futures for December delivery advanced $3.7 to $1,198.40/oz. on COMEX.

Front month West Texas crude futures gained 22 cents to end the day at $76.51 per barrel on NYMEX, ahead of the result of OPEC’s summit in Vienna, on 27 November. At last count, analysts were seemingly divided regarding whether the oil cartel would finally decide on a cut to its current levels or production at that venue or not.

Three-month copper futures rose 90 cents to end the day at $6,725 per metric tonne on the LME.

The price action in the commodities space was mixed. Wheat futures for March delivery rose 0.2% to settle at $5.535 a bushel on the Chicago Board of Trade, but nevertheless finished the week off by 1.6%.

Corn futures lost 0.3% to $3.853 per bushel in CBoT trading, paring some of the previous day’s gains.