Copper dropped as worries lingered over fading demand in China before the Lunar New Year- 17 Jan 2018

Gold Prices Up in Asia As Trending Weaker Dollar Aids Sentiment - 

Gold prices gained in Asia on Wednesday with a weaker dollar helping demand for the precious metal priced in the US currency. Overnight, gold prices traded roughly unchanged on Tuesday, shrugging off a rebound in the dollar from three-year lows as data showed traders remained bullish on the precious metal despite the uptick in demand for riskier assets. Gold prices remained close to four-month highs amid ongoing demand for the yellow metal as data showed traders increased their bullish bets on gold for the fourth-straight week. Gold’s strong start to the year comes against continued risk-on sentiment as global equities extended their gains from 2017, rising to all-time highs. Some market participants, however, said they expected the yellow metal to range trade in 2018 amid expectations of additional Federal Reserve rate hikes this year. In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.

Copper dropped as worries lingered over fading demand in China before the Lunar New Year - 

Copper on MCX settled down -0.5% at 456.50 as LME Copper dropped 1.8% to settle at $7,078 a ton marking the biggest drop since Dec. 5. Rising stockpiles this year and LME spot prices trading below futures suggest that buyers aren't rushing to secure copper as factories ramp up. The metal advanced 7.2% in December, capping the biggest annual gain in eight years, but has started to retreat this month. Prices are down 2.3% so far in 2018. Sentiments capped as report shows that copper market are in surplus for 2018 of 48,000 tonnes forecast by BMO Capital Markets could be wiped out if wage negotiations at mines in top producers Chile and Peru lead to strikes that disrupt supplies. A deal on labour conditions at Escondida in Chile, the world’s largest copper mine, expires in June. Also China, the world’s largest consumer, could also suck in massive amounts of refined copper if authorities there aggressively enforce restrictions on imports of scrap. 

Oil prices edge up on tighter supplies, healthy demand - 

Oil prices rose on Wednesday on tightening supply and strong global demand, although some analysts warned of a downward correction after a more than 13-percent price rise in a month. Prices have been driven up by production curbs in OPEC nations and Russia, as well as by healthy demand-growth.In an effort to tighten markets and prop up prices, the Organization of the Petroleum Exporting Countries (OPEC) and Russia started to withhold production in January last year, and the cuts are set to last through 2018. This restraint has coincided with healthy oil demand and economic growth, pushing up crude prices by more than 13 percent since early December. "Oil remains underpinned by the solid economy with strong oil demand tightening global oil inventories. The past years' surplus supplies are slowly disappearing," said Norbert Ruecker, head of commodity research at Swiss bank Julius Baer.

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