Key commodities got a boost ahead of the outcome of a a US central bank meeting, as investors wagered on a fourth round of stimulus by the world’s largest economy. Brent crude, gold and copper inched up on expectations the Federal Reserve will likely unveil on Thursday plans for monthly debt purchases of $45 billion, on top of the mortgage bond buying of $40 billion to improve liquidity.
However, fears of weak demand and the US budget crisis limited the gains. Brent crude futures rose 86 cents to $108.87 a barrel in the intraday trade, recovering from losses last week, while US crude gained 62 cents to $86.41 a barrel.
Analysts said the advance in the commodity was halted by hopes that OPEC oil ministers, in a meeting on Wednesday, could keep supply limits steady despite the projection of a lower demand in the first half of 2013.
Gold prices rose as further easing measures would likely aid the “safe-haven” asset by stoking inflation fears and keeping pressure on long-term interest rates. Spot gold inched up by 0.2% at $1,713.12 an ounce in intraday trade, while US gold December futures gained $5.10 an ounce.
