Gold Gains In Asia As Investors Look To US Nonfarm Payrolls - 05 Jan 2018

Gold Gains In Asia As Investors Look To US Nonfarm Payrolls - Gold prices rose in Asia on Friday with US nonfarm payrolls key for the precious metal and a reading of 190,000 new jobs added in December expected today. Overnight, gold prices moved off session lows shrugging off the prospect of further Federal Reserve rate hikes amid upbeat labor market data pointing to underlying strength in the US economy. The recent rally in gold futures came under pressure amid investor concerns that continued upbeat US economic data could strengthen the case for the Fed to raise rates more than currently priced in. Private payrolls grew by 250,000 for December, a sharp increase from the 185,000 private jobs created in the previous month, according to a report released Wednesday by ADP and Moody's Analytics. That beat economists’ forecast of 191,000. 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. Losses in gold, however, were capped by a continued slump in the greenback as it struggled to rebound from three-month lows.

FeNi Luppen may change nickel supply landscape - A similar product to nickel pig iron (NPI) produced in Indonesia, FeNi Luppen, is set to change the global nickel supply pattern if Chinese stainless steel mills are receptive, SMM learned. Backed by Russian investors, Blackspace in Indonesia launched the nickel intermediate product in 2017 and claimed the production could hit 200,000 nickel mt in 2019. A source add that the company has made trial shipments to Chinese stainless steel mills. This is a product that has gotten less attention compared with NPI as the latter received heavy Chinese investment in Indonesia over the past couple of years.

Having Trouble Taking Out Long-Term Tops - March Comex High Grade Copper futures closed slightly higher on Thursday in a relatively volatile session. The two-sided price action in the U.S. Dollar may have influenced copper’s movement. There weren’t any major news events on Thursday with most traders focusing on technically overbought conditions and on whether the hedge funds will continue to buy at such lofty levels after an almost month long rally in December. The recent price action suggests investors are deciding whether to buy strength or wait for a pullback into a value zone.

Oil dips away from 2015 highs as doubts over rally emerge - Oil prices fell on Friday, dropping away from highs last seen in 2015, as soaring production in the United States undermined the 10 percent rally from lows hit in December that was driven by tightening supply and political tensions in OPEC member Iran.Traders said political tensions in Iran, third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), had pushed prices higher. "The protests in Iran add more fuel to the already bullish oil market mood," said Norbert Ruecker, head of commodity research at Swiss bank Julius Baer. Oil prices have received general support by production cuts led by OPEC and by Russia, which started in January last year and are set to last through 2018, as well as by strong economic growth and financial markets. 

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