Copper Scrap prices advance; Copper Futures edge up.- 16 Mar 2017

Gold at 1-week high, Fed shows no sign of speeding up rate hikes.

Gold rallied more than 1.5 percent to a one-week high on Wednesday, as the U.S. Federal Reserve called for gradual monetary tightening after raising interest rates by an expected 25 basis points for the second time in three months.The central bank said in its policy statement that further hikes would only be "gradual," with officials sticking to their outlook for two more rate hikes this year and three more in 2018. "After loitering around $1,200 for most of the session, gold surged smartly higher after the FOMC only lifted its weighted projections by a marginal 9 basis points in 2018 and 2019," said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York."The Fed seems clearly happy to be an indulgent parent couching the rate hike in the gentlest terms possible." Gold is highly exposed to interest rates, as rising rates lift the opportunity cost of holding non-yielding bullion.

Copper Scrap prices advance; Copper Futures edge up.

India's major brass and copper scrap prices advanced on Tuesday, while copper futures prices at India's Multi Commodity Exchange edged up as funds bought on growing expectations of stronger demand from top consumer China, but a higher US dollar ahead of Wednesday's decision on US interest rates by the Federal Reserve caps gains.The most active April copper contract on the India's Multi Commodity Exchange settled up by 0.01 percent to Rs. 385.50 per kilogram on Tuesday from previous close of Rs. 385.45 per kilogram. Copper Futures at MCX touched an intra-day high of Rs. 387.10 per kilogram and an intra-day low of Rs. 379.50 per kilogram during Tuesday.China issued data on Tuesday showing the economy got off to a strong start this year, supported by bank lending, infrastructure spending and a much-needed resurgence in private investment. China accounts for just under half of global copper demand, which is estimated at around 23 million tons this year.

Oil prices extend gains after drop in U.S. stockpiles.

Crude oil prices rose on Thursday in early Asian trading, extending gains from the previous session after official data showed U.S. stockpiles had eased from record highs. Prices surged on Wednesday after a slew of market reports and official data offered some hope that a near three-year global glut in oil is coming to an end, albeit more slowly than many anticipated.The benchmarks have bounced off their lowest levels since the Organization of the Petroleum Exporting Countries (OPEC) agreed at the end of last year to cut crude production, with an initial surge evaporating as stockpiles remained high. The inventories have been closely watched by oil traders to determine whether the OPEC agreement to cut output is reducing the global glut.Oil bulls were also encouraged after the International Energy Agency said in its monthly oil report that demand should overtake supply in the first half of this year.

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