Gold nears 5-month top on weak dollar, geopolitical tensions - 19 Apr 2017
Gold nears 5-month top on weak dollar, geopolitical tensions.
Gold turned higher on Tuesday, nearing the prior session's five-month peak, bolstered by a softer dollar, lower U.S. Treasury yields, North Korea tensions and nervousness ahead of the French presidential election. May's call added to a lengthening list of uncertainties for investors already on edge over geopolitical tensions that also include Syria, Afghanistan, Turkey and U.S. relations with Russia and China. Risk is skewed to the downside but underlying support is there with the focus on political uncertainties.
In France, investors remained nervous ahead of the first round of the country's presidential election this Sunday, even though an opinion poll put centrist Emmanuel Macron first, just ahead of far-right, anti-euro candidate Marine Le Pen. "The Fed is still probably on course to hike two more times this year," McKay said.
Codelco Ceases Beneficiation Plant at Salvador Copper Mine.
Codelco suspended its beneficiation plant at the Salvador copper mine after one senior executive died in an accident Tuesday, wenhua.com reported. The company said they are now investigating the accident which happened in the floatation area of the beneficiation plant. The Salvador copper mine produced 60,000 tonnes of copper in 2016, the lowest of all the company’s copper mines. It did not disclose when to restart the plant. SMM sees limited effect on copper market from this due to low output at the mine.
Southern Copper Corporation’s labor union said they will keep on fighting for salary at the railway line through which the company ships ore from the copper mine in Peru, according to FXStreet. Labor union official Efrain Centeno said about 3,000 miners took the ILO railway line, which has been suspended from the strike beginning on Monday, and they will keep on holding the railway line unless the company meets their demand. A negotiation between the company and the labor union will take place in Lima on Thursday.
Oil prices dip on bloated U.S. market, mixed Saudi signals.
Crude prices dipped on Wednesday as bloated U.S. supplies weighed on markets while a fall in Saudi crude exports was offset by rising production in the country. Although crude inventories fell by 840,000 barrels in the week to April 14 to 531.6 million barrels, still close to record highs, gasoline stocks rose by 1.4 million barrels as refinery crude oil runs increased by 334,000 bpd, the API said. Outside the United States, a fall in Saudi output as part of its planned production cuts for the first half of this year lent the market some support.
The Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia is the de-facto leader, together with other producers like Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year to rein in a global fuel supply overhang and prop up prices.
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