Gold gains in Asia as U.S. politics cause anxiety on economic policies - 17 May 2017
Gold gains in Asia as U.S. politics cause anxiety on economic policies,
Gold gained in Asia on Wednesday on the continued chaotic U.S. political situation weighing on expectations for economic policies favoring tax cuts and higher spending and as key lawmakers call for a memo reportedly written by former FBI director James Comex on Trump discussing an active investigation to be released. Overnight, gold prices edged higher on Tuesday, as U.S. political jitters weighed on the dollar, while mostly downbeat economic data dampened expectations of a rebound in second-quarter U.S. economic growth. The ongoing political turmoil in Washington as well as the recent batch of softer economic data has dampened expectations that the Fed will opt for an aggressive rate hike path. According to investing.com’s Fed rate monitor tool 67% of traders expect the Federal Reserve to hike its benchmark rate in June, compared to more than 80% of traders in the previous week.
LME Copper to See Range-Bound Trading.
LME copper will move at USD 5,580-5,630/mt during Asian trading hours on Wednesday and SHFE 1707 copper will move at RMB 45,200-45,600/mt. In China’s domestic market, spot copper should trade at discounts of RMB 50-0/mt on Wednesday. Aluminum Stocks Fall Sharply at Major Japanese Ports .Aluminum stocks tumbled at Japan’s three major ports at the end of April, according to data from Marubeni. Stocks at the Port of Yokohama, Nagoya and Osaka totaled 250,300 tonnes, down 7.6% on a monthly basis. SHFE 1707 aluminum should move at highs of RMB 13,910-14,100/mt today, with resistance at the 20-day, 40-day and 60-day moving averages. The US dollar index dipped to 98. LME aluminum will range USD 1,910-1,930/mt today. In east China’s spot aluminum market, spot discounts of RMB 90-50/mt are expected over SHFE 1706 aluminum contract.
Crude down in Asia as API reports surprise build.
Crude prices dropped in Asia on Wednesday after industry estimates showed a surprise build in U.S. oil supplies.vernight, crude futures settled lower on Tuesday, as investors awaited a fresh weekly batch of U.S inventory data amid growing support from energy ministers for prolonged supply cuts to March 2018.On Monday, Saudi Energy Minister Khalid al-Falih said that the deal to cut global production and rein in supply has significantly reduced inventories, but added that further cuts were needed to trim the level of inventories to the five-year average."There has been a marked reduction to the inventories, but we're not where we want to be in reaching the five-year average," Saudi Energy Minister Khalid al-Falih said on Monday.
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