Commodity news: Oil gains as Middle-East boils, gold loses shine ahead of Fed meet

Brent prices will likely touch $100 a barrel by next June as stocks see a marginal fall, according to a Goldman Sachs analyst report.

Oil prices gained marginally on November 1 ahead of the central bank meetings in some major economies, including the US, scheduled later this week, and with the market keeping a close watch on the raging war in the Middle East.

The Brent January crude futures gained 36 cents, or 0.4 percent, to $85.38 a barrel by 0040 GMT, after shedding $1.33 on October 31. Brent December futures settled 4 cents lower at $87.41 a barrel at the contract's expiry on the same day.

Brent prices will likely touch $100 a barrel by next June as stocks see a marginal fall, according to a Goldman Sachs analyst report.

Gold, on the other hand, traded lower in the domestic futures market, reflecting a bleak global trend, with investors keeping an eye on the Federal Reserve's monetary policy decision amid a soaring conflict between Israel and the Hamas. The Fed meeting's outcome plays a key role in deciding the gold prices. Prices of the safe-haven commodity will see chances of rising if the Fed does not hint at any further rate hikes.

Another significant development that will have a wider impact on domestic markets is the price hike of commercial LPG cylinders. State-run oil marketing companies, Indian Oil Corporation (IOC), Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, revised the prices of commercial 19kg LPG cylinders up to Rs 101.5 in the four metros, effective November 1.

After the revised rate, a 19-kg commercial LPG cylinder will now cost Rs 1,833 instead of Rs 1,731 in Delhi. In Mumbai, it will be available at Rs 1,785.50. In Kolkata, it will be priced at Rs 1,943 per cylinder and Rs 1,999.50 per cylinder in Chennai.

In the international market, prices of cocoa - an essential raw material for chocolates - have been hovering near a 45-year high after inclement weather on the West African coast triggered the spread of the black pod disease and consequent snag in supplies. On October 31, cocoa prices closed slightly lower as a stronger dollar sparked long liquidation in cocoa futures.