Commodities: mixed with metals higher, oil lower - ANZ

Analysts at ANZ explained that the commodities were mixed, with metals higher but oil under further pressure. Base metals posted strong gains on the back of a weaker USD.

Key Quotes:

"Investors continue to speculate that the Fed may hold rates low in the short term.

Sentiment was also boosted by a rise in mortgage applications in the US, the world’s second biggest copper consumer. 

Gold also benefited from the weaker USD, while strong vehicle sales in China saw palladium surge over 4%.

Oil fell sharply after the EIA weekly report reported an increase in inventories.

Crude oil stocks rose 1.06 million barrels to 523.6 million barrels. The unexpected rise was driven by reduced operating rates at refineries, which fell 1.1% to 92.2% of capacity. Bearish supply-side news also weighed on the market, with Saudi Arabia reporting a record 10.67mb/d production in July."