Gold Prices Down In Asia As Market Looks Ahead To US Nonfarm Payrolls - 6 Oct 2017

Commodity Intraday Tips
Gold Prices Down In Asia As Market Looks Ahead To US Nonfarm Payrolls. 
Gold prices dipped in Asia on Friday as investors awaited nonfarm payrolls in the U.S. even thought he data will likely be widely skewed by the effects of hurricanes in Texas and Florida. Overnight, gold prices traded below breakeven on Thursday, as a raft of better-than expected economic data pointed to solid U.S. economic growth underpinning a move higher in the dollar. The duo of reports come ahead of a nonfarm payrolls update due Friday, expected to show the U.S. economy created 90,000 jobs in September. “Gold’s bearish tones are largely due to the tightening of monetary policy,” said Adrienne Murphy, chief market analyst at AvaTrade. “A rise in the cost of borrowing, as well as tackling the balance sheet, will put a huge strain on the price of the precious metal.” Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion. 

Base metals prices mostly upbeat; copper, zinc in the driving seat. 
Base metals prices on the London Metal Exchange were broadly higher during the Asian morning trading session on Friday October 6, with copper and zinc sustaining upward momentum.“The red metal rallied on news that an earthquake in Chile could disrupt supply. While the impact looks minimal to copper assets, it triggered some short covering as it broke through some key technical levels,” ANZ Research said on Friday. 

Zinc prices also continued their climb this morning, finding support amid tight stock levels. 
China’s crackdown on pollution has prevented over 1,000 zinc mines across the country from ramping up production, stopping miners from cashing in on the metal’s recent price rally. China’s mined zinc output declined 7.4% or 185,100 tonnes year on year to 2.33 million tonnes in the first half of 2017, according to World Bureau of Metal Statistics. 
 
Oil markets wary as another tropical storm heads for Gulf of Mexico.   
Oil markets were cautious on Friday as traders monitored a tropical storm heading for the Gulf of Mexico and as China remained closed for a week-long public holiday. But the prospect of extended oil production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia helped support prices. Activity was subdued due to the Golden Week holiday in China and because traders were monitoring tropical storm Nate, which has triggered U.S. Gulf production and refinery closures just weeks after several hurricanes pummeled the region. Traders said they were closing positions ahead of the expected arrival of the storm as they did not want to be caught with open trades over the weekend. The Louisiana Offshore Oil Port, one of the most important fuel handling facilities in the Gulf of Mexico, said on Friday that it had suspended vessel offloading operations. 

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