Gold prices remained supported on safe-haven buying following concerns over the arrests of some Saudi royal family members

Gold prices remained supported on safe-haven buying following concerns over the arrests of some Saudi royal family members. Investors bet that monetary policy would continue to diverge between the United States and the euro zone. Gold also drew support from jitters linked to U.S. President Donald Trump's trip to the Far East. Trump's visit to South Korea could provide gold with some support in coming days. Gold imports by India, the world’s biggest consumer after China, dropped 31 percent last month from a year earlier, according to a person familiar with the information. Inbound shipments fell to 66.8 metric tons in October, from 96.7 tons, said the person, who asked not to be identified because the data aren’t public. Demand for physical gold was lacklustre in top consumers India and China this week, while the lure of the metal remained stable in Singapore, but India’s peak wedding season is expected to usher in renewed interest for bullion in coming weeks. Gold is considered an essential part of weddings in India, second-biggest consumer of the metal in the world after China, and it is a popular gift on such occasions. China’s gold reserves were unchanged at 59.24 million ounces in October from the previous month, the central bank said on Tuesday.

Crude oil on MCX settled up 1.16% at 3734 gained as rupee weakness supported while Nymex Crude oil edged down by 0.3% to settle at $57.20/bbl, the first loss in four sessions after a furious rally took them to 2-year highs in the previous session. Traders are becoming convinced that OPEC will do whatever it takes to re-balance the global oil market in 2018. Even hitherto reluctant Nigeria is reportedly on board with plans to extend OPEC's supply quota plan with Russia, according to reports. While pressure seen as tension flared between Saudi Arabia and Iran, just as the Saudi crown prince tightened his grip on power. Saudi Crown Prince Mohammed bin Salman moved to shore up his power base with the arrest of royals, ministers and investors, which an official described as part of "phase one" of the crackdown. More tellingly, tensions escalated between OPEC members Saudi Arabia and Iran and it was this, more than the purge, that rattled the oil market. In economic news, job openings were little changed in September, keeping the opening rate at a record high 4.0 percents, according to the so-called JOLTS report from the Bureau of Labor Statistics. Job openings in the third quarter were up 7 percent from a year earlier. Yesterday the API said US crude oil stocks fell by 1.562mbls last week, less than expected. Gasoline stocks rose by 520,000 barrels, while distillate inventories slipped 3.133mbls. market expected a 2.7mbls drop in crude, a 2.100mbls decline in distillates and a 2.176mbls easing in gasoline inventories expected. Supplies at the oil storage hub of Cushing, Oklahoma, rose by 812,000 barrels.

Copper on MCX settled down -1.25% at 445.30 fell but remained near multi-year highs on strong global growth and supply worries from a crackdown on polluting smelters in China. Support will seen as Chilean miner Codelco said that Copper prices could test record highs above $10,000 a ton as the supply-demand balance shifts to “substantial” deficits from 2018. Goldman Sachs Group Inc. also predicts the metal will continue to benefit from synchronized global growth. Copper is up 24 percent this year at $6,866 a ton on the LME, and last month reached a three-year high. Sentiments remain firm as boosted by expectations of healthy demand from the electric vehicle sector, a pollution crackdown in China and signs of solid global economic growth. Participants at the LME Week industry gathering in London last week were bullish about the sector's prospects, especially because of anticipated growth in demand for electric vehicles, which depend heavily on nickel and copper. While Copper production in Democratic Republic of Congo, Africa's top producer of the metal, was up 9.3 percent this year through September over the same period last year at 831,000 tonnes. Now market participants were also monitoring U.S. President Donald Trump's Asian tour. Trump arrived in South Korea on Tuesday amid concerns Washington may resort to military action against its Northern neighbor.

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