Commodities: Gold, silver dip after FOMC, ahead of US non-farm payrolls

Gold, silver and copper futures dipped Thursday after their recent run-up, as expectations of a US rate rise in 2016 dried up and traders began looking to the market-sensitive US non-farm payrolls data out on Friday.

The yellow metal's price has surged on its defensive merits since UK's non-binding vote to quit the European Union on 23 June, with fund money targeting the asset class.

At about 14:51 SBT, Comex-quoted gold was down 0.79% to $1356.3 an ounce, while silver fell 2.29% to $19.74 an ounce and industrial-staple copper shed 0.51% to $214.25 a pound.

Three-month London Metals Exchange prices on copper, aluminium and zinc ebbed, but tin rose.

SwissQuote observed that hourly support was around $1338, adding the technical structure suggests that there is a growing upside momentum.

FXTM Research Analyst Lukman Otunuga focused on near-term upside risk events.

"Expectations are already low over the US Federal Reserve taking action in 2016," he said, referring to the US Federal Open Market Committee implying a US rate hike was on ice until Brexit's impact was clearer.

"A disappointing non-farm payrolls on Friday could be the final ingredient needed to send gold prices to fresh two year highs."

Against this backcloth, Nymex-traded West Texas Intermediate crude was up 1.39% to $48.09 a barrel, and Intercontinental Exchange (ICE) listed Brent was up 1.35% to $49.46 a barrel.

Sterling had eked out minor gains against the dollar, rising 0.45% to $1.2989, while the dollar-spot index had ebbed 0.06% to $95.998.

Prices were mixed among agriculture futures, whether grains or softs.

Of the former, Chicago Board of Trade-quoted corn was ahead 2.2% to $349.00 a bushel, as wheat rustled up 1.69% to 435.75 a bushel.

Oats and rough rice also made solid gains, but various classes of soybean and canola were moderately lower.

In softs, ICE-traded Cocoa frothed up 0.81% to $3105/MT. Coffee 'C' fell 0.24% to $142.95 a pound and Cotton No.2 lost 0.2% to $65.17 a pound. Live cattle lost 0.09% to $112.7 a pound.