Commodities: Gold in crisp focus as BoJ convenes, may yet nudge higher

Gold is in crisp focus on Thursday and may yet nudge higher in coming sessions, in the aftermath of the US Federal Reserve standing pat on rates late on Wednesday and as Bank of Japan's policy meeting continues.

At about 14:53 BST, among Comex-listed metals, safe-haven gold was up 1.11% to $1349.3 an ounce, silver was up 2% to $20.4 an ounce and copper was 1.42% firmer at $221.6 a pound.

London Metals Exchange's three-month prices were mixed, with aluminium and tin mildly ahead and copper and zinc tumbling lower.

"Gold has finally broken out of its summer malaise, now challenging (a) resistance area defined by $1339 and $1345, suggesting a bullish bias," said SwissQuote in a research note.

"A break of these levels is needed to open the way for a second leg higher," it said, adding that longer-term the "technical structure suggests that there is a growing upside momentum."

All eyes are on the results of Bank of Japan's policy meeting, which were due tomorrow. These may provide yet another boost to defensive-play gold's appeal, depending on their outcome.

On Wednesday, the yen wheeled lower against sterling and the dollar after Japan's PM, Shinzo Abe, promised a 28-trillion-yen stimulus package.

SP Angel analysts said the stronger metals prices were aided by a fall in the US dollar as traders priced the chances of Fed rate hike before year's end at less than 50%.

"Brent is flat this morning following a sharp decline on Wednesday following an unexpected increase in US crude stockpiles last week," SP Angel said in a note.

Nymex-quoted West Texas Intermediate crude was down 0.31% to $41.79 a barrel, while Intercontinental-priced Brent fell 0.78% to $43.13 a barrel. The black liquid is struggling amid a global supply glut and fears it will hit a demand cliff.

Among agricultural futures traded via Chicago Board of Trade, corn was down 0.51% to $341.25 a bushel, and wheat ebbed 0.12% to $414.25 a bushel.

Intercontinental Exchange-priced cocoa was up 0.32% to $2866 a MT, while cotton No.2 fell 1.22% to $72.65 a pound. Live cattle was lower 0.4% to $112.6 a pound.