Gold eased on Tuesday in Asia after an early round of bargain hunting

PRECIOUS METALS

Gold eased on Tuesday in Asia after an early round of bargain hunting as investors look beyond the widely expected Fed rate hike this month for any new language on the pace of increases going forward. On the Comex division of the New York Mercantile Exchange gold fell 0.07% to $1,175.65 a troy ounce. Elsewhere in metals trading, silver for March delivery on the Comex rose 0.08% to $16.913 a troy ounce. Gold initially gained after Italian voters rejected a referendum on constitutional changes backed by the government, prompting Prime Minister Matteo Renzi to step down and sending the euro to 20month lows.

BASE METALS

LME copper is predicted to range between USD 5,880-5,980/mt during Asian trading hours on Tuesday and SHFE 1702 copper will move at RMB 47,900-48,800/mt. Final reading of Eurozone’s GDP in Q3 will be released on Tuesday. Eyes should be on US’s economic data on Tuesday, including October’s balance of trade, October’s durable goods, factory order and December’s IBD consumer confidence index. Most US’s economic data released on Monday’s night were positive, but US dollar index remains weak, supporting base metals. Base metals are expected to strengthen on Tuesday. Eurozone’s economy is stable, although Europe is in troubled times. Eurozone’s GDP growth in Q3 will not rally to 1.7% seen in Q1, hurt by slowing down Germany economy growth in Q3.

ENERGIES

Crude oil prices fell in Asia on Tuesday with U.S. industry inventory estimates ahead expected to set the tone.The American Petroleum Institute will release its estimates of crude oil and refined product stocks last week later on Tuesday. On Wednesday, more closely-watched official figures from the U.S. Department of Energy are due.Overnight, oil prices reached a new, one-year high by mid-day on Monday, as last week’s rally from the Organization of Petroleum Exporting Countries (OPEC) agreement to cut production continued.

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