LME Nickel to be Weighed by Higher US Dollar. - 23 Mar 2017

Commodity Intraday Tips

Gold hits 3-week peak as equities ditched on Trump worries.  
Gold climbed to a three-week high on Wednesday as the dollar fell to seven-week lows and bond yields sank on uncertainty over the economic policies of U.S. President Donald Trump. Trump and Republican congressional leaders appeared to be losing the battle to get enough support to pass their Obamacare rollback bill. Mark Meadows, who heads the conservative House Freedom Caucus, said his group had more than enough members to stop the bill from passing current House Republican rollback plan is scheduled for a floor vote on Thursday.  

Gold has rallied around $50 from last Wednesday's low and clocked its longest winning streak since early January after a less hawkish tone on interest rates in the U.S. Federal Reserve's latest policy statement last week. "The repositioning of investors since the (Fed) meeting continues unabated, with investors becoming less bearish as a result of the subdued outlook for rates in 2018," ANZ analysts said in a note.  

LME Nickel to be Weighed by Higher US Dollar.  
US stocks plunged yesterday. The US dollar rebounded, weighing down nickel. LME nickel is expected to test support from USD 10,000/mt today. SHFE 1705 nickel will move at RMB 82,500-83,800/mt. In China’s domestic market, spot nickel should trade at RMB 82,200-83,800/mt on Thursday. 

SMM 2017 Copper & Aluminum Summit is Opening! 
The 12th Shanghai Copper & Aluminum Summit 2017, organized by SMM and Shanghai Nonferrous Metals Association, is opening.  The Summit, to be held on March 23-24, 2017, Shanghai, will focus on hot topics, price outlook, market insights, and etc. SMM would like to invite you to follow stories at the 2017 Shanghai Copper & Aluminum Summit on March 23-24.  Seasonally adjusted new home sales for the US in February will be released today. Despite a drag from crude oil, LME aluminum will remain strong and move at USD 1,910-1,940/mt today and SHFE 1705 aluminum will move between RMB 13,650-13,900/mt. 

Oil bounces off November lows, but bloated US stockpiles pressure market. 
Oil prices recovered on Thursday from losses chalked up the session before, but the market remained under pressure as bloated U.S. crude inventories and rising output dampen OPEC-led efforts to curb global production. 

Analysts said Brent had found technical support around $50 a barrel and was being pushed up as traders took new long positions after crude hit multi-month lows overnight the bounce, traders said the market remained under pressure, largely due to a big U.S. inventory and doubts that an effort led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output was reining in a global fuel supply overhang. McKenna, chief market strategist at futures brokerage AxiTrader, said OPEC was "underwriting the investment plans and returns of their competition in U.S. shale oil." McKenna said there was a risk of oil prices dropping further due to U.S. output and a lack of compliance by some producers who said they would cut production. 

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