Gold prices down in Asia on cautious trade as Fed views awaited

Gold prices down in Asia on cautious trade as Fed views awaited.

Gold futures dipped in Asia on Wednesday with sentiment on edge ahead of the latest review of interest rates by the Fed. The Federal Reserve Open Market Committee (FOMC) got its two-day policy meeting underway on Tuesday amid expectations the central bank will leave interest rates unchanged. Investors, however, will parse the policy statement on Wednesday for fresh insight into the central bank’s thinking on monetary tightening. Following its decision to raise rates in June for the second time this year, the Fed said that the slowdown in inflation was transitory and signaled its intention to raise rates at least once more this year. Overnight, gold prices slipped from their highest level in around a month in North American trade on Tuesday. Gold has been well-supported in recent sessions as ongoing political turmoil in the White House and weakness in the U.S. dollar spurred haven demand for the precious metal.

China Refined Zinc Imports to Rise in June but Slide in July, SMM Foresees.

China’s refined zinc imports are poised to increase slightly in June, but will slide 3% on the month in July, SMM predicts. Raw Material Inventory Days Decline at China Zinc Smelters in June and China’s influx of imported zinc will decline after the closing of import profit window, SMM explains. Zinc Inventories at China Zinc Smelters to Grow in July, SMM Says

Prebaked Anode Costs to Rise Further for Chinese Aluminum Smelters, SMM Expects.

Prices for prebaked anode, supplementary material in aluminum smelting, look set to continue rising next month, which will add to aluminum costs, SMM predicts. China Aluminum Stocks Grow Slower After Hitting Nearly 5-Year High and Petroleum coke prices kept rising, which might pass through to prebaked anode prices in August, SMM explained. The impact on prebaked anode demand from latest production cuts in aluminum market will not be felt for now, SMM noted.

Oil prices firm on optimism over declining stocks.

Oil prices firmed on Wednesday to hold near eight-week highs hit in the previous session, on expectations of a drawdown in U.S. stocks and as a rise in shale oil production shows signs of slowing. U.S. crude stocks fell sharply last week as refineries boosted output, while gasoline inventories increased and distillate stocks decreased, data from industry group the American Petroleum Institute showed on Tuesday. Oil prices have come under pressure from an oversupply of crude around the globe, brought on in part by rising production from U.S. shale regions. Indonesia's energy minister said on Tuesday that Southeast Asia's top crude producer would be open to rejoining the Organization of the Petroleum Exporting Countries (OPEC) as long as it is not forced to curb its own crude oil production.

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