Gold falls toward 3-week low after Congress reaches spending deal - 1 May 2017

Commodity Intraday Tips

Gold falls toward 3-week low after Congress reaches spending deal. 
Gold prices declined in European trading on Monday, falling toward a threeweek low after U.S. congressional leaders reached an agreement to fund the government through the fall. Also on the Comex, silver futures inched down 9.8 cents, or about 0.6% to $17.16 a troy ounce, after touching a more than six-week low of $17.08 earlier in the session.Trading activity was expected to remain light on Monday, with most markets in Europe, the U.K. and Asia closed for the May Day holiday. Negotiators in the U.S. Congress reached a deal late on Sunday on around $1 trillion in federal funding that would fund the government through September 30 and avert a government shutdown later this week. The full House of Representatives and Senate must still approve the bipartisan pact, which would be the first major legislation to clear Congress since Donald Trump became president on January 20. The news boosted risk-sensitive assets, such as global equities, and sparked a sell-off in assets perceived as safe, such as the yen, bullion and U.S. Treasuries, which are often used as a hedge in times of political uncertainty. 

Nickel futures climb 1.86% as demand picks up.  
Nickel futures jumped over 1 per cent during evening trade in the domestic market on Friday as investors and speculators extended their positions in the industrial metal on rise in demand after recent price fall.   However, according to Reuters poll, pace of expansion in China's manufacturing sector likely to be slowed down this month as factory-gate price-growth slowed and authorities moved to tackle risks in the property market and credit growth, capped gains further. At the MCX, nickel futures for April 2017 contract is trading at Rs 607.30 per kg, up by 1.86 per cent, after opening at Rs 598.10, against a previous close of Rs 596.20. It touched the intra-day high of Rs 610.40.  

Oil lower after Chinese data, U.S. rig count.  
Oil was lower Monday as a slowdown in Chinese manufacturing activity in April weighed on the demand outlook. Increased U.S. drilling activity also weighed on the outlook for supply. Trading was light with many markets in Asia and Europe closed for the Labor Day holiday. But oil remained underpinned by hopes for an extension of an output cut deal by major producers. OPEC and non-OPEC producers have agreed to cut output by 1.8 million barrels a day in the first half.  Iran said over the weekend it would back an extension. Baker Hughes weekly data Friday showed a rise of nine in the U.S. rig count to 697. That was the highest number since April 2015. Higher U.S. output undermines the impact of the output cuts. A faster-than-expected slowdown of growth in China's manufacturing sector in April weighed on prices. An official survey showed on Sunday that producer price inflation cooled and policymakers' efforts to curtail financial risks in the economy weighed on demand. Moderation in the China PMI could see commodity prices come under some modest pressure," ANZ said in a note. 

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