Gold Prices Dip In Asia On Stronger Dollar, Safe-Haven Demand Ebbs

Gold Prices Dip In Asia On Stronger Dollar, Safe-Haven Demand Ebbs.

Gold prices fell in Asia on Friday as the dollar showed continued gains and demand for safe-haven assets is on the wane for now. Overnight, gold prices fell on Thursday after the dollar hit three-month highs following a slump in euro as the European Central Bank pared its bond purchases while extending its monetary stimulus programme for a period of nine-months. The European Central Bank announced its intention to rein in monetary stimulus, reducing its monthly purchases of bonds to €30 billion while extending its bond purchasing programme for a period of nine months through September 2018. Although the move was widely expected, the euro came under pressure, lifting the dollar to highs, as investors weighed ECB president Mario Draghi’s comments indicating that the central bank’s bond buying programme is “open ended”, leaving the door open to a prolonged period of monetary stimulus beyond September 2018.

Zinc settled flat as support seen amid worries that winter production cuts are tightening supplies of metals.

Zinc on MCX settled down -0.07% at 212.60 prices traded in the range as some profit booking seen near to 213-214 level while LME Zinc prices hold well above $3100 on supply worries and the prices has increased almost 4 percent in October supported by supply concerns. Zinc prices gained this week after data showed output in China slipped in September, highlighting worries that winter production cuts are tightening supplies of metals.

Jinchuan Group Cuts Nickel Price 1,800 yuan.

Jinchuan Group cut nickel ex-works price by 1,800 yuan per tonne on Friday. After the cut, its ex-works price was down to 94,000 yuan per tonne (nickel plate), and 95,200 yuan per tonne (small ones, in barrel), respectively.

Oil markets tighten, Brent approaches $60 per barrel.

Oil prices inched higher on Friday, with Brent crude approaching $60 a barrel amid tightening market expectations, buoyed by comments from Saudi Arabia's Crown Prince backing the extension of OPEC-led output cuts. WTI has been weaker relative to Brent as rising U.S. output has capped prices in the United States. "Oil raced higher overnight with Brent finishing in sight of the magical $60 a barrel mark, spurred on by Saudi remarks supporting the oil production cut through to the end of 2018," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. Saudi Arabia's Crown Prince Mohammad bin Salman told Reuters on Thursday that the kingdom would support extending the output cut in a bid to stabilize oil demand and supply.Oil prices have hovered near their highest for this year in recent weeks amid signs of a tightening market, talk of an extension of the cuts, and geopolitical risks in Iraq and Iran. "Prices for both Brent and WTI are now approaching important recent range tops.

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