Morgan Stanley warns that rising rig count could undo the rally

Shares in Caterpillar Inc (NYSE:CAT), the world's largest earth-moving equipment maker, fell 2.2% after hours as the company cut its 2015 profit outlook. The company warned weaker commodity prices would result in a bigger-than-expected decline in demand, worsened by mining companies scaling back expansions and shelving major projects.

Rio Tinto is cutting even more coal mining jobs in Australia as the miner is struggling with a dramatic plunge in coal prices and a high Australian dollar.

Slated reforms to China's pricing system for the carbon fossil fuel indicate that the country's leading decision-makers anticipate a sustained decline in global spot prices.

The resource of the Peace River coal project in BC jumped 180% while the percentage of met coal was upped to 60% from 35% before.

The recent upward trend is comparable to price gains after QE1 and QE2 indicating the yellow metal is likely to cross $1,900 in October and $2,200 by the start of 2013.

Both Australian trade minister Craig Emerson and treasurer Wayne Swan over the weekend entered the debate over whether the country is facing a period of decline as the country's resource-led economy loses steam.

It will be 12 to 18 months before there will even be any signs of a recovery in the eastern US coal sector says Monty Boyd, a major Caterpillar supplier for the region.

When Leily Omoumi, a gold analyst with Scotiabank in Toronto, turns her engineer's eye on a mining company, she can translate insight into profits for investors.

For the third consecutive quarter, the gold market saw net de-hedging, with the hedge book falling by 188 koz or 6 tonnes.