U.S. oil dips below $50 over doubts recent rally will last

Gold Gains In Asia Ahead OF Yellen Speech, Thin Regional Trade With China Shut.

Gold prices gained in Asia on Wednesday with markets in China, Taiwan and South Korea shut for holidays and caution ahead of remarks later in the day from the U.S. central bank chief. Overnight, gold prices halted their recent slump after treasury yields trimmed gains pressuring the dollar to retreat from six-week highs lifting sentiment on the yellow metal. Yellen will speak at the Community Banking in the 21st Century Conference on Wednesday amid growing speculation concerning her position as Fed chair. Fed Governor Jerome Powell and former Fed governor Kevin Warsh are reportedly on a shortlist of candidates to succeed Janet Yellen. Gold prices have fallen for threestraight weeks and show no sign of abating as data on Friday suggested that traders are losing faith in gold’s upside potential in the wake of renewed tax reform hopes and an expected year-end rate hike.

Copper has been consolidating and defending a pair of bottom.

December Comex High Grade Copper futures are trading higher early Tuesday after investors came in to stop the selling and defend a pair of bottoms. The market has been consolidating for almost two weeks at and inside a major retracement zone. The price action suggests that investors believe copper is in a bull market, but that prices may just be a little ahead of the fundamentals. This usually happens with the hedge funds get too aggressive.

Zinc traded higher on mounting supply concerns in China.

Zinc climbed to 10-year high as China’s pollution crackdown has raised concerns that domestic zinc production will be hit and heavy industry will be forced to import more refined metal. Striking workers at North America's second-largest zinc processing plant rejected a wage and pension offer from the company adding pressure to zinc supply. Manufacturing PMI’s from US, Europe and Japan continue to suggest an upturn in factory activity.

U.S. oil dips below $50 over doubts recent rally will last. Oil prices eased on Wednesday, with U.S. crude dipping below $50 per barrel, pulled down by caution that a rally that lasted for most of the third quarter would not extend through the last three months of the year.Traders said the drops came over concerns that a third-quarter market rally that had lifted Brent to mid-2015 highs by late September had been overdone. "Fundamentals may not yet be strong enough to support a continued rally, especially in growth-dependent commodities such as oil," said Ole Hansen. Analysts say that a so-called market rebalancing is now well underway, meaning that demand is no longer undershooting available supply. The re-balancing is a result of strong consumption and also due to efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output by around 1.8 million barrels per day (bpd) in 2017 and the first quarter of next year.

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