Gold Prices Dip In Asia On Global Interest Rate Views Remain Mixed - 15 Nov 2017

Commodity Intraday Tips
Gold Prices Dip In Asia On Global Interest Rate Views Remain Mixed.
Gold prices eased in Asia on Wednesday as investors continue to see uncertainty about next year's outlook for interest rates in the U.S. and Europe. Four of the world's top central bankers promised on Tuesday to keep openly guiding investors about future policy moves as they slowly withdraw the huge monetary stimulus rolled out during the financial crisis. After pumping some $10 trillion into financial markets since the 2008 crisis - driving them many markets to record highs - the Federal Reserve, European Central Bank, Bank of England and Bank of Japan are now trying to wean investors off easy money without causing an upset. The Fed has said it expects three rate hikes in 2018 as well as one in December, but the market has not priced those in fully for next year. Overnight, gold prices rose on Tuesday as traders increased their bullish bets on the pressure metal while dollar weakness lifted sentiment on the precious metal. Gold prices added to Monday’s gains, shrugging off a report showing wholesale inflation grew faster-thanexpected in October. 

[Hot Topic] Balance between Nickel Supply and Demand, Price Decides the Supply.
Nickel price has surged since the end of September. The main reasons are numerous output restrictions for environment protection, short of inventory, and new energy cars are expected to have a strong growth in the future, which brought up the demand from the downstream. After a few days of market correction, a sharp decline happened yesterday. Long position owners brought up the price during the night, only to see it going down again after the release of China’s economy growth data.

Copper Cathode Spot Price in Shanghai.
Copper cathode spot quote is at a 10 – 130 yuan / premium than the futures contract of the month. Transaction price of copper (standard) is 52,680 – 52,850 yuan / ton, and copper (substitution) is 52,700 – 52,880 yuan / ton.

Oil prices slide after IEA casts doubt over demand outlook.
Oil prices fell over 1 percent on Wednesday, continuing Tuesday's slide after the International Energy Agency cast doubts over the past few months' narrative of tightening fuel markets.The price falls mean that crude prices are now down by around 5 percent since hitting 2015 highs last week, ending a 40-percent rally between June and early November. "Crude prices dropped dramatically after the IEA forecast a gloomy outlook for the near future ... The drop was arguably exacerbated by a global selloff in other commodities," said Sukrit Vijayakar, director of energy consultancy Trifecta. The International Energy Agency (IEA) on Tuesday cut its oil demand growth forecast by 100,000 barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd in 2017 and 1.3 million bpd in 2018. The demand slowdown could mean world oil consumption may not, as many expect, breach 100 million bpd next year, while supplies are likely to exceed that level. (For a graphic on global crude oil supply and demand balance. 

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