Gold Prices Fall In Asia After Official China PMI Dampens Sentiment

Gold Prices Fall In Asia After Official China PMI Dampens Sentiment.

Gold prices fell in Asia on Tuesday as China showed a dip in a key PMI survey, raising questions about demand prospects as non-manufacturing also fell. Overnight, gold prices rebounded from session lows as the dollar came under pressure after data showed inflation continued to stutter amid growing speculation that President Donald Trump is likely to pick Federal Reserve Governor Jerome Powell to replace current Fed chair Janet Yellen. Gold prices steadied ahead of the Federal Reserve’s two-day policy meeting which gets underway on Tuesday after data showed inflation remained subdued while consumer spending grew at its fastest rate in more than eight years. That was in-line with expectations but well below the Fed’s 2% target, fuelling expectations that the trend of subdued inflation will keep interest rates lower for longer. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, jumped 1% last month, the Commerce Department said on Monday. That was the biggest jump in consumer spending since August 2009.

Nickel prices dropped in step with steel prices, reversing earlier gains and on track to end the week sharply lower.

Nickel on MCX settled down -1.68% at 750 in step with steel prices, reversing earlier gains and on track to end the week sharply lower. China's government said that it had met its target for cutting steel capacity this year, with further curbs expected this winter when smog is typically heaviest. The country is the world's biggest consumer of nickel. Indonesia's PT Aneka Tambang Tbk (Antam) received a recommendation from the mining ministry for an additional 1.25 mln tonnes of nickel ore exports over the next 12 months.

Glencore Downgrades Zinc Output Estimation for 2017.

Glencore lowered its forecast for zinc, copper and coal due mainly to operational difficulties, maintenance and output slide during the end stage of mine exploration, it said in its Q3 earnings report. But it said its profit will not be hurt this year.

Oil prices stable as OPEC-led supply cuts tighten market, but some caution remains.

Oil prices were stable early on Tuesday, supported by a tightening market due to ongoing OPEC-led efforts to cut supplies, although the prospect of rising U.S. shale output dragged. U.S. West Texas Intermediate (WTI) crude futures were at $54.05 a barrel, 10 cents below their last close. But that was still near their highest level since February and up around 28 percent since 2017-lows marked in June. Despite generally upbeat market sentiment, some analysts were cautious after several days dominated by strong price rises. "U.S. shale output could keep a lid on prices over the medium to long-term," said Shane Chanel, equities and derivatives adviser at ASR Wealth Advisers.There are also technical chart indicators that warrant caution, analysts said. "The relative strength indexes (RSI) on both contracts are at overbought levels.

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