Crude Oil falls as U.S. politics limit risk appetite

                Crude Oil futures traded lower in the early part of Tuesday’s Asian session as traders backed away from riskier assets on fears of U.S. government shutdown. 

On the New York Mercantile Exchange, light, sweet crude futures fell 0.08% to USD102.25 per barrel in Asian trading Tuesday. The November contract settled lower by 0.52% at USD102.33 per barrel on Monday. 

Oil traders appeared to gloss over some decent U.S. data and focused more political haggling in the U.S. that could result in a government closure. 

In U.S. economic news out Monday, the Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.

Separately, industry data revealed that Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading. Those data points were strong enough to stoke speculation that the Fed could taper its monetary easing program before the end of this year. The U.S. is the world’s largest oil consumer. 

On Capitol Hill, Republicans and Democrats are arguing over provisions in Obamacare, President Barack Obama’s sweeping health care legislation that was passed in 2010. Republicans want Obamacare delayed and some provisions in the law to be stripped altogether, but Senate Democrats have balked at that idea. 

New York-traded oil slipped 4.9% in September, but was still able to muster a third-quarter gain of 6%. If the U.S. government shuts down before the end of the week, it could delay the release of the September jobs report due out Friday. 

Elsewhere, Brent crude futures for November delivery fell 0.10% to USD108.20 per barrel on the ICE Futures Exchange. - investing.com

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Gold rises on modest bargain hunting

             Gold futures rose in the early part of Tuesday’s Asian session as traders did some bargain hunting with the yellow metal after it was pushed lower Monday amid looming political uncertainty in the U.S. and Europe. 

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery rose 0.20% to USD1,329.70 per troy ounce in Asian trading Tuesday. The December contract settled lower by 0.91% at USD1,327.00 per ounce on Monday. 

Gold futures were likely to find support at USD1,306.20 a troy ounce, Tuesday's low, and resistance at USD1,375.10, the high from Sept. 19. 

Despite gold’s appeal as a safe-haven investment, investors have in recent days dumped bullion even as the U.S. government heads towards a shutdown that could threaten the health of global financial markets. On Monday, President Barack Obama said a shutdown is preventable and said House Republicans are purposefully manufacturing the shutdown for political gain. 

Over the weekend, the House approved legislation that stripped Obamacare, the President’s landmark health care reform package, of key provisions. However, the Democrat-controlled Senate has vowed to not accept any budget package that waters down Obamacare. 

Gold was also under pressure following some U.S. data points. In U.S. economic news out Monday, the Federal Reserve Bank of Dallas reported earlier that its general business activity index increased to 12.8 in September from 5.0 in August, beating market calls for the index to remain unchanged.

Separately, industry data revealed that Chicago purchasing managers' index hit 55.7 in September from 53.0 in August, beating analysts' calls for a 54.0 reading. Those data points were strong enough to stoke speculation that the Fed could taper its monetary easing program before the end of this year. 

Elsewhere, Comex silver for December delivery fell 0.11% to USD21.685 per ounce while copper for December delivery rose 0.08% to USD3.319 per ounce. - investing.com

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