Gold, gain in Asia on risk, supply concerns - 9 Feb 2017

Commodity Intraday Tips

Gold, gain in Asia on risk, supply concerns.
Gold prices gain in Asia on Thursday on political risk and supply disruption respectively with sentiment cautious. Gold for April delivery on the Comex division of the New York Mercantile Exchange rose 0.27% to $1,242.85 a troy ounce. Copper futures on the Comex rose 0.30% to $2.637 a pound as workers at the Escondido copper mine in Chile, the largest in the world, started a strike on Thursday.The workers union has warned that the strike could be lengthy, potentially affecting global supplies. Chile is the world’s biggest producer of the red metal, providing almost a third of the world's supply. Overnight, gold prices rose for the fifth day in a row on Wednesday, extending a rally to a fresh three-month high amid ongoing worries over political risks in Europe and economic uncertainty in the U.S.

LME Copper to See Range-Bound Trading.
LME copper will range at USD 5,850-5,930/mt on Thursday and SHFE 1703 copper will move at RMB 47,50048,000/mt. In China’s domestic market, spot copper should trade at discounts of RMB 220-80/mt on Thursday.The State Customs Committee of the Russian Federation reported Russia’s aluminum exports increased in 2016 while nickel and copper exports slid, according to wenhua.com. Aluminum exports totaled 3,481,400 tone’s. Nickel exports totaled 185,700 tone’s, with 511,100 tones of copper exports.Hamhung Zinc Industry Co.’s zinc ingot production was up 8% year-on-year to a record high of 362,500 tonnes in 2016, cnmn.com reported. Zinc ingot sales rose year-on-year to 383,000 tonnes, with processing cost down 150 yuan per tonne. Output rate increased 2.31 percentage points year-on-year.Offshore yuan depreciated slightly on Thursday morning. LME nickel is expected to advance on Thursday and SHFE 1705 nickel will move at RMB 86,400-87,600/mt with rising crude oil. In China’s domestic market, spot nickel should trade at RMB 85,300-86,800/mt on Thursday.

Oil prices slump on bloated U.S. fuel inventories, stalling China demand.
Crude oil prices gained in Asia on Thursday with supply and demand cues awaited in a market seen heading toward balance. Ahead, rig count data is in focus. Last week, Baker Hughes said the number of rigs drilling for oil in the U.S. increased by 17 last week, marking 13 straight gains and taking the total count to 583, the most since November 2015.Overnight, crude prices settled higher in the U.S. on Wednesday after data on crude oil inventories from the the Energy Information Administration (EIA) showed a massive build and the third straight weekly increase. Crude oil inventories in the U.S. jumped by 13. Million barrels at the end of last week, the EIA said, a surprise above the expected 2.8 million barrels gain. On Tuesday, the industry group the American Petroleum Association reported at 14.23 million barrels build in crude stocks.A deal by OPEC and non-OPEC nations to trim nearly 1.8 million barrels per day in the first six months of the year is seen largely on track, supporting prices above $50 a barrel with the focus on demand in major importing countries such as India and China where overall economic growth prospects are being closely watched as well as supply responses. 

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