Gold gains in Asia ahead of China PMIs, sentiment cautious - 30 May 2017

Commodity Intraday Tips

Gold gains in Asia ahead of China PMIs, sentiment cautious.  
Gold gained in Asia on Tuesday in cautious trade as investors awaited fresh China data points for the global metals complex. Bottom line: Everything is correlated with production so we expect to see the pattern we observed in the industrial enterprise profits data – slowing growth in the mining, chemicals and building materials sectors and accelerating growth in the machinery and equipment sectors – echoed in the IP data. We also this means the peaks in the manufacturing PMI and in IP growth are behind. Besides the monthly jobs report, this week's holidayshortened calendar also features U.S. data on manufacturing and service sector growth, consumer confidence, auto sales, personal spending, core PCE inflation, as well as monthly trade figures.Futures traders are currently pricing in around an 80% chance of a hike at the Fed's June 13-14 meeting, according to Investing.com’s Fed Rate Monitor Tool.

Copper
LME Copper prices traded lower by 0.4 percent to close at $5657.5/t last week as Chinese demand woes continued to hurt following recent Moody’s downgrade and weak imports data. Moody’s downgraded Chinese sovereign debt rating on 23rd May’17 for the first time since 1989, adding to slew of worries regarding growth of the mainland nation. Also, the International Copper Study Group (ICSG) said in its latest monthly bulletin that the global world refined copper market showed a 93,000 tonnes surplus in February, compared with a 55,000 tonnes surplus in January.However, weaker DX and decline in LME stocks are supporting the metal. However, decline in LME stocks for six sessions in a row restricted sharp downside. LME Copper inventories plunged by 5.3 percent to 318,650 tonnes last week.

Crude falls in Asia after early gains, U.S. demand eyed.
Oil Crude reversed course and dipped in Asia on Tuesday despite some upbeat signals on the U.S. summer driving season off to a strong start at the Memorial Day weekend.Markets in China and Hong Kong are shut for a holiday. Overnight, oil prices rose slightly on Monday, barely paring last week's steep losses with the market remaining cautious as increases in U.S. drilling activity have undercut an OPEC-led push to tighten supply. Trading was subdued due to public holidays in China, the United States and Britain.  The market remains uncertain about whether the extension of output cuts by OPEC and other producing countries will be enough to support prices. Analysts will watch whether the OPEC output cuts can reduce the global crude glut.

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