Bullions, Base-Metals and Energy Updates Today 03 Dec. 2012

•  Bullions

Gold trading steady today morning, after posting its second consecutive monthly decline in November, as uncertainty about the U.S. budget negotiations kept investors on tenterhooks. Gold posted minor gains today on strength in the euro, but uncertainty about the U.S. budget talks kept bullion's advances in check. Underscoring investors' interest in the metal, holdings of gold-backed exchange-traded funds hit a record high and speculators raised their net length in gold for the third straight week. The euro rose to a six-week high versus the dollar after upbeat China manufacturing data helped trigger stop-loss buying, and the dollar index dropped to a one-month low, making dollar-priced commodities more attractive for buyers holding other currencies. 

•  Base—Metals

Copper rose to its highest level in more than five weeks on Friday, supported by a weak dollar and growing confidence in the economic outlook for top consumer China, with prices on track to post their first monthly rise in two months. U.S. consumer spending and income data fell short of expectations earlier, though business activity in the U.S. Midwest expanded for the first time since August, data showed. Economists polled by Reuters expect China's factory activity in November probably expanded at its fastest pace in seven months, reinforcing views that the country's economic recovery is entrenched. The world's biggest copper producer, Codelco said in an interview that it saw encouraging signs of a recovery in China, adding that a pledge by China's new leadership to boost urbanisation would boost demand for the red metal. China's top maker of copper tubes, Golden Dragon Precise Copper Tube Group, expected 2013 production to rise by 14 percent from a year ago, as signs of an improving economy inspire cautious optimism, boosting 

orders at home and abroad. 

•  Energy

Crude-oil futures rose Friday, moving prices into positive territory for the week as traders were more hopeful that the U.S. fiscal cliff could be averted. Encouraging comments during most of the week from U.S. government officials has led to some cautious optimism that a budget deal can be reached before the end of the year, when a series of severe budget and tax cuts will automatically go into effect. Also crude oil rose on signs economic growth was reviving in China, the world's second-biggest oil consumer, and supply concerns triggered by tensions in the Middle East. Activity in China's manufacturing sector quickened for the first time in 13 months in November, a survey of private factory managers found, adding to evidence of a pickup after seven quarters of slowing growth. Investors will now be awaiting China's industrial output and trade data later this month for further confirmation of revival in the world's biggest energy consumer. Also offering support to the oil markets are tensions in the Middle East, such as hostilities between Israel and Palestine, fresh political unrest in Egypt and the conflict in Syria.