Gold climbs to near 3-week high as dollar slides.- 22 Mar 2017
Gold climbs to near 3-week high as dollar slides.
Gold rallied to the highest level in nearly three weeks on Tuesday after a strong debate performance from French centrist presidential candidate Emmanuel Macron and as fading expectations for near-term U.S. interest rate hikes pushed the dollar lower. The Fed's policy statement last Wednesday was less hawkish than expected, dampening speculation that the U.S. central bank would raise interest rates quickly this year. Gold is highly sensitive to rising U.S. rates, because they increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.Gold fell in the run-up to the Fed's rate hike last week, with hedge funds and money managers sharply cut their net long position in COMEX gold futures funds totally missed the boat which means they could run right back in here," said Bill O'Neill, co-founder of LOGIC Advisors. "There are a number of things going on politically that are going to keep the market nervous." "The previous two hikes marked cycle lows for gold, and European election uncertainty, U.S. President Trump's foreign policies, as well as seasonal demand in India materializing in April are likely to make Q2 the strongest quarter for gold prices this year," Standard Chartered (LON:STAN) said in a note.
Japan Copper Wire & Cable Shipments to Decline 5.2% in February 2017.
Japan Electric Wire and Cable Makers' Association announced Japan’s copper wire & cable shipments are expected to decrease 5.2% year-on-year to 55,300 tone’s in February 2017, wenhua.com reported.The Committee of Statistics under Ministry of National Economy of the Republic of Kazakhstan reported Kazakhstan’s copper cathode and refined zinc production fell 3.3% and 1.0%, respectively on a yearly basis in the first two months of the year, while crude steel output leapt 8.6% year-on-year, according to wenhua.com. Tuesday as investors and speculators exited their positions in the industrial metal on hopes of restart of production at the world's biggest copper mine in Chile after unions and miner BHP Billiton said that they would hold further talks. The striking workers’ union at the world's largest copper mine, BHP Billiton's Escondido, in Chile on Monday said that it was open to further conversations which could lead to reopening negotiations.
Oil prices fall on bloated U.S. crude storage.
Oil prices dipped on Wednesday as rising crude stocks in the United States underscored an ongoing global fuel supply overhang despite an OPEC-led effort to cut output. "Crude oil prices fell as concerns over rising U.S. inventories resurfaced... Rising exports in Libya also weighed on prices," ANZ bank said on Wednesday. U.S. crude oil inventories rose by 4.5 million barrels in the week to March 17 to 533.6 million, the American Petroleum Institute (API) said late on Tuesday. Bloated storage comes as U.S. oil production C-OUT-T-EIA has risen over 8 percent since mid-2016 to more than 9.1 million barrels per day (bpd) to levels comparable in late 2014, when the oil market slump started. Rising production in the United States and elsewhere, and bloated inventories, are undermining efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output and prop up prices is likely to see the largest increase in mega projects production in history," Goldman Sachs said in a note to clients on Tuesday.
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