Gold continues to gain ground on strong data, weak dollar

Gold continues to gain ground on strong data, weak dollar.

Gold continue to gain ground on Tuesday in Asia a day after China reported strong second quarter GDP, industrial output and retail sales figures for June with industrial metal demand for housing and property development also in focus. A weaker dollar has helped shore up sentiment and gold prices. The market will now look towards Thursday and a meeting of the European Central Bank for fresh clues on when the central bank will shift away from its ultraeasy policy. Markets in Japan are shut on Monday for a holiday. Last week, gold prices rose to two-week highs on Friday as weak U.S. inflation data added to doubts over whether the Federal Reserve would raise interest rates for a third time this year.

SMM: China Aluminum Stocks Hit Over 4-Year High.

Aluminium ingot stocks in China’s five major markets have reached the highest level in nearly five years, SMM statistics showed. Potential Surplus from Aluminium Capacity Cuts to Weigh on Alumina Prices, SMM Warns. Downstream producers showed low buying interest due to falling orders, and impact from production cuts has not been felt, leading to the growth, SMM explained. Profit Expands Sharply at Chinese Aluminum Smelters, SMM Says.

Norilsk Nickel Mine Explosion Kills Four and Eyes on Impact on Relocation Plan.

Four miners were killed in an explosion at the Zapolyarny Mine, part of the Polar Division of Norilsk Nickel, foreign media reported. China Nickel Ore Inventories Fall, SMM Reports. The company said the accident is not expected to influence ore shipments due to its low percentage of company’s total output. In 2016, nickel production at the Zapolyarny Mine accounted for 0.7 per cent of its total, and 2 per cent of its copper output, so no a major impact is expected on Norilsk's output and profit, even if the mine closes.

Oil prices stable as strong demand meets ongoing supply glut.

Oil prices were stable on Tuesday, supported by strong consumption but weighed by ongoing high supplies from producer club OPEC and also the United States.In a sign of strong demand, data on Monday showed refineries in China increased crude throughput in June to the second highest on record. Despite this, oil markets have struggled with oversupply since 2014, resulting in a more than 50 percent fall in prices since then. A deal by the Organization of the Petroleum Exporting Countries with Russia and other non-OPEC producers to cut supplies by around 1.8 million barrels per day (bpd) between January this year and March 2018 has so far not led to the tighter market and higher prices that producers have hoped for.

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