Gold gains in Asia as Fed views change, weak dollar supports - 22 Jun 2017

Commodity Intraday Tips
Gold gains in Asia as Fed views change, weak dollar supports.  
Gold prices rose in Asia on Thursday with a weaker dollar and revised views on the Fed hiking rates for a third time this year offered support. Overnight, gold prices traded above breakeven on Wednesday, as the dollar faded despite data showing that U.S. existing home sales unexpectedly rose in May while growing expectations for a rate hike later this year limited upside in the precious metal. On Tuesday, Boston Fed President Eric Rosengren said low interest rates do pose financial stability concerns that central bankers and the private sector must take seriously while Bill Dudley, head of the New York Federal Reserve, a day earlier, downplayed the recent slowdown in inflation, warning that halting rate increases at this point would be dangerous. In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interestbearing assets such as bonds.  
Peru Copper Output to Continue Rising in May-June, SMM Predicts.  
Peru’s copper production increased 1.6% on a yearly basis in April to 190,903 tonnes, foreign media reported. Higher output at MMG’s Las Bambas mine and Chalco’s Toromocho mine offset output declines from the strike at Cerro Verde. WBMS: World Zinc Market in Severe Deficit in January-April despite More Output. Peru’s copper output will continue growing during May-June since the strike has ended, SMM predicts.  

Chalco Cuts Aluminum Prices in Major Markets After Big Hike.  
China Aluminum International Trading Co. (Chalco Trading) lowered aluminum prices it offered in major markets today after sharp hike in previous two days.Several major alumina producers in Shandong, one of China’s main alumina and aluminum producing regions, said they have no plans to expand alumina capacity in Shandong in the future. This is because environmental protection requirements are strict and local alumina market is almost saturated, those surveyed told SMM.      

Oil prices climb off 10-month lows as U.S. stockpiles drop. 
Oil prices rose on Thursday after U.S. crude and gasoline stockpiles fell, but worries over whether OPEC-led output cuts would be able to rein in a three-year glut continued to drag. The market largely shrugged off comments overnight from Iran's oil minister that members of the Organization of Petroleum Exporting Countries (OPEC) are considering deeper cuts in production. With production rising in Nigeria and Libya, countries exempt from the deal, and output surging in the United States, which was not part of the agreement, many bulls appear to have thrown in the towel. Oil has "now fallen into 'bear' territory," ANZ said in a research note. "OPEC (and allies) may have pared back production, but that's being offset by relentless drilling in the U.S. and more output in Libya." A bigger-than-expected cut in U.S. crude stockpiles reported overnight is barely shifting the dial. 

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