Gold Prices Eye $1,300 as Dollar Weakness Continues - 28 Dec 2017



Gold Prices Eye $1,300 as Dollar Weakness Continues-
Gold prices continued to edge higher on Wednesday as the dollar struggled to pare losses amid consumer sentiment data that missed expectations. Gold futures remained close to four-week highs as the dollar continued to trend lower after a mixed bag of economic data failed to lift sentiment on the greenback amid light trading volumes. Gold’s bullish start to the week comes as data showed the traders increased their bullish bets on the previous metal last week. Gold notched a second-straight weekly gain last week, closing above its 200-day moving average, a key technical indicator, in a sign of bullish momentum.

Refined aluminium output in Shandong unaffected, price under pressure-
There would be little impact on the capacity of refined aluminium in Binzhou, Shandong province even though the city was said to have exceeded its allowed capacity, according to SMM senior analyst Liu Xiaolei. In fact, he said that the capacity swap and increase in other regions should be paid more attention to. “Since the launch of production cut due to environmental production, around 1 million mt of refined aluminium capacity have been affected. However, this has not led to supply shortage and aluminium ingot inventory remained high,” Liu said.

Zinc prices gained as support continues on signs of strong demand from China next year- 
Zinc on MCX settled up 0.67% at 210.65 as support continues on signs of strong demand from China next year. China's economic growth is forecast to decelerate next two years mainly because of domestic policy tightening, the World Bank said in its China Economic Update. The U.S. dollar fell to a 3-1/2 week low as traders bet more major central banks will begin reducing monetary stimulus in 2018 because of faster global economic growth. China's industrial firms rose at a sharply slower pace in November, as demand and producer price gains eased in further confirmation of ebbing growth in the world's second-largest economy.

Oil prices near 2015 highs on tight market-
Oil prices were stable on Thursday with trading activity drying up ahead of the New Year weekend.Heading into 2018, traders said market conditions were relatively tight due to ongoing supply cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC), as well as top producer Russia.Traders said the high prices were a result of a relatively tight market following a year of OPEC and Russia-led production cuts, which were started last January and scheduled to cover all of 2018. Pipeline outages in Libya and the North Sea have also been supporting oil prices."Given the much stronger price response to supply disruptions in the wake of OPEC supply cuts, the market is poised to make further gains," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore. "With geopolitical risk no less sure ahead of Libyan elections next year, we should expect more regional chaos and disorder to underpin oil prices," he added.

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  1. Commodity Tips
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