DAILY COMMODITY MARKET STRATEGY- 7 Apr 2016

Oil prices extend gains on US inventory data

Crude prices extended gains in Asia today following a sizeable drop in US stockpiles, the first decline in seven weeks, indicating stronger demand in the world's top oil consumer.

US benchmark West Texas Intermediate for delivery in May was up 39 cents, or 1.03 percent, at USD 38.11 and Brent crude for June rose 29 cents, or 0.73 percent, to USD 40.13.

Gold up on Fed caution over rates; higher equities cap gains

Gold ticked up on Thursday after minutes from the Federal Reserve's last policy meeting showed caution over higher US interest rates, but the metal's gains were capped by strength in global equities.

FUNDAMENTALS

Bullion slid 0.7 percent on Wednesday as global equity markets posted solid gains, aided by a climb in oil prices and a surge in healthcare stocks.

After the minutes, traders added slightly to bets that the Fed will raise rates earlier than December, the timing that had been expected before the release.

Gold, which is sensitive to rate increases as they lift the opportunity cost of holding the non-interest-yielding metal, posted its biggest quarterly rise in nearly 30 years in the first three months of 2016 as expectations for rate rises faded.

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