Gold gains in Asia in buy data day, Korea impasse continues - 14 Aug 2017

Commodity Intraday Tips
Gold gains in Asia in buy data day, Korea impasse continues. Gold prices gained slightly in Asia on Monday in a buy regional data day, but North Korea off the boil for now. Japan's second quarter surged an unexpected 4..0% on year as investment in plant and equipment lifted sentiment for the sixth straight quarter of expansion, official data released on Monday showed for the fastest pace of growth since January-March 2015.  Ahead this week, the Fed’s latest meeting will be in focus as investors look for more hints on the timing of the next U.S. rate hike. A report on U.S. retail sales will also be closely watched. Elsewhere, UK data on inflation and employment will be in the spotlight amid ongoing concerns over the economic fallout from Brexit. Demand for the precious metal was also underpinned by increased safe haven demand amid heightened geopolitical tensions between the U.S. and North Korea.  

Alumina Market to Face Pressure from Weiqiao Group after Big Aluminum Cuts, SMM Warns.   
Considering massive aluminum cuts at Weiqiao Group, alumina prices will face heavy downward pressure due to inflows of surplus alumina from the company, SMM expects. Breaking News: Weiqiao Group and Xinfa Group Ordered to Close Illegal Aluminum Capacity. Weiqiao Group announced it will release alumina into the market. Moreover, sales from Xinfa Group will exacerbate the situation.  

Lead Prices to Stage Corrections This Week after Rapid Growth, SMM Forecasts.  
LME lead will likely drop this week with price range at $2,320-2,380 per tonne, SMM expects. Primary Lead Inventory in Shanghai and Guangdong down 1,000 Tonnes Further, SMM Reports. Downstream battery producers are active in inquires but purchase based on orders. Finished goods inventories at primary lead smelters are low, and secondary lead market will remain in supply shortage due to strict environmental checks.  
Oil prices dip on weak Chinese refining activity. 
Oil prices dipped on Monday as a slowdown in Chinese refining activity growth cast doubts over its crude demand outlook, while rising U.S. shale output suggested supplies would likely remain high. "Demand is outperforming expectations amongst both developed and emerging markets. However, global crude inventories remain bloated and there are considerable uncertainties heading into 2018," BMI Research said in a note, including the possibility of rising supplies. Shale production in the largest U.S. oilfield should rise by as much as 300,000 bpd by December, according to industry forecasts. Oil production from the Permian Basin of West Texas and New Mexico is closely watched because its low costs and rapid growth have pressured efforts by the Organization of the Petroleum Exporting Countries to drain a global crude supply glut. 

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