Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Canadian government bonds plunged on Friday, following the rally in crude oil prices. Also, the Bank of Canada optimistic economic outlook in its monetary policy statement drove-out investors from safe-haven assets.
The yield on the benchmark 10-year bond which moves inversely to its price rose nearly 4 basis points to 1.097 percent, the yield on the long-term 30-year bonds also jumped 3 basis points to 1.713 percent and the yield on short-term 2-year note bounced more than 2 basis points to 0.569 percent by 13:20 GMT.
The Canadian bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Bank of Canada's target. Today, crude oil prices rose after declining below $47 a barrel level, attempting a minor recovery amid persistent global glut of crude oil and refined products. Brent crude futures were up 0.59 percents at $47.65 a barrel and U.S. West Texas Intermediate futures were trading 0.85 percent higher at $46.07 a barrel by 13:20 GMT.
On Wednesday, the central bank announced no change in the overnight rate target of 0.50 percent, in line with market expectations. Moreover, the BOC in its statement mentioned that the risks to the profile for inflation are roughly balanced, although the implications of the Brexit vote are highly uncertain and difficult to forecast.
According to the statement, real GDP grew by 2.4 percent in the first quarter of 2016, against market expectations of -1.0 percent contractions, which weighed down by volatile trade flows, uneven consumer spending, and the Alberta wildfires. The statement also justified that economy is expected to grow further in the third quarter of 2016 due to stabilising crude oil prices in the international market.
Lastly, Canadian stocks are set for another strong session Friday, as rebounding oil prices could drive gains in the energy sector. The September futures on the S&P TSX index were up 0.14 percent at 11:30 GMT.
