Gold gains as dollar dives to 8-month lows - 29 Jun 2017

Commodity Intraday Tips
Gold gains as dollar dives to 8-month lows.  
Gold prices bounced off session lows, buoyed a slump in the dollar as U.S. political uncertainty resurfaced, after the Senate’s decision to delay a vote on a healthcare bill raised fresh doubts about President Trump’s ability to deliver on his pro-growth economic agenda. A slump in the dollar to eight-month lows against its rivals boosted demand for dollar-denominated gold, as traders sought safe haven protection from U.S. political uncertainty, after the Senate delayed a vote on a healthcare bill to repeal and replace Obamacare. President Donald Trump has reiterated several times that healthcare reform would need to be passed before his administration moves ahead with tax reform, which is widely viewed as a pro-economic growth measure. Some analysts believe that the next set of inflation data slated for Friday, June 30, will be key in determining if the Fed can deliver on its promise of three hikes this year.  
   
Copper Price to Get Limited Upward Strength from Jinchuan’s Maintenance, SMM Reports.  
Xu Maili, Everbright Futures (EBF) Metal Research Director, attributes Jinchuan’s maintenance to the surge in copper price, in addition to big rise of ferrous metal prices and weakening US dollar index. Hu Haibin, from Jiangxi Copper Futures Department, concludes three factors to the growth. First, impact from risky events, such as Brexit negotiation, has subsided, and US banks have passed stress tests, spurring market risk appetite. Second, hawkish comment from European Central Bank weighs down US dollar index. Third, downstream demand rises, while traders and downstream producers report insufficient inventories due to cash crunch..  

Rising Nickel and Downstream Purchases Push up China NPI Price, SMM Reports.  
Recently, the procurement price for high-grade NPI has been rising, Shanghai Metals Market survey finds. Rising nickel price and concentrated purchases by mills are two major reasons behind the gain, SMM explains.      

Oil rises for 6th session, buoyed by US output decline. 
Crude oil rose for a sixth straight session on Thursday to its highest since June 19 on a decline in U.S. output, but ongoing worries about global oversupply continued to drag. "The fast ramp-up in shale drilling and the unexpectedly large rebound in Libya/Nigeria production are on track to slow the 2017 stock draws," investment bank Goldman Sachs (NYSE:GS) said. "This creates risks that the normalization in inventories will not be achieved by the time the OPEC cut ends next March. We expect this will leave prices trading near $45 (a barrel) until there is evidence of a decline in the U.S. horizontal oil rig count, sustained stock draws or additional OPEC production cuts." 

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