Copper prices gained on short-covering as support seen from sharply weaker US dollar which helped copper to rebound- 25 Jan 2018

Gold Gains In Asia As Dollar Index Dips Further, Mnuchin Comments Ahead   Eyed. 

Gold prices gained in Asia on Thursday after an initial small gain in the dollar index was reversed and favored physical buying of the greenback-denominated commodity with investors still pondering an apparent switch in the US strong dollar policy by the US Treasury Secretary Steven Mnuchin overnight. Overnight, gold prices rose sharply on Wednesday supported by a slump in the dollar while growing fears of a US-China trade war fuelled a modest uptick in safe-haven demand. The dollar came under heavy selling pressure falling nearly 1%, boosting demand for the gold, after Treasury Secretary Steven Mnuchin signalled his endorsement of a low dollar. “Obviously a weaker dollar is good for us as it relates to trade and opportunities," Mnuchin told reporters in Davos, according to Bloomberg.

Analysis: Domestic steel mills use less sinter, lump ore, more pellets in 2017.

Domestic steel mills used less sinter and lump ore, and more pellets in 2017, SMM research showed. Sinter and lump ore usage stood at 74.2% and 11.4%, down 0.5 and 0.3 percentage point respectively, on a yearly basis. Pellets accounted for 14.4%, up 0.9 percentage point on the year. On average, the iron content of iron ore at domestic mills inched up 0.5 percentage point to 57.9% Fe. Sinter usage declined 0.5 percentage point on environmental concerns. Many mills mix high-quality fines in order to reduce pollution.

Copper prices gained on short-covering as support seen from sharply weaker US dollar which helped copper to rebound.

Copper on MCX settled up 3.22% at 454.10 gained on short-covering as support seen from sharply weaker US dollar which helped copper to rebound from a one-month low despite a second day of rapidly rising inventories that suggested there is plentiful supply of the metal used in power and construction. Concern over US protectionism and comments by the US Treasury Secretary welcoming a weak dollar drove the greenback to a three-year low against major currencies. A weaker dollar makes metals cheaper for holders of other currencies and can stimulate demand. 

Oil hits December 2014 high on dollar weakness, decline in U.S. crude inventories. 

Oil prices on Thursday hit their highest level since December 2014, lifted by a weak dollar and a 10th straight week of declines in U.S. crude inventories.Price support has also been coming from supply restrictions led by a group of producers around the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which started last year and are set to last throughout 2018. "The Saudi's and Russians continue to work together to talk the oil market higher and last night, the countries' two oil ministers said they were working together on other longer-term projects as well," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. In foreign exchange markets, the U.S. dollar hit its lowest level since December, 2014 against a basket of other leading currencies (DXY).

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