Gold Prices Down In Asia On Profit-Taking, Eye On Dollar Weakness

Gold Prices Down In Asia On Profit-Taking, Eye On Dollar Weakness.

Gold prices fell in Asia on Monday on profit-taking and as investors keep an eye on the dollar for potential further weakness linked to a more gentle than expected rate hike path by the Fed in 2018 after disappointing jobs data last week. Financial markets in Japan will remain closed for a holiday. The dollar briefly slid to the day’s lows following the report, before regaining ground. The jobs data was seen as unlikely to alter investor expectations for a rate hike by the Federal Reserve at its March meeting. Fed funds futures have priced in a more than 67% chance the U.S. central bank will hike interest rates in March, according to Investing.com’s Fed Rate Monitor tool.

Copper dipped following strong gains last month as Chinese investors grew cautious on the metal’s prospects.

Copper on MCX settled down -1.14% at 452.5 following strong gains last month as Chinese investors grew cautious on the metal’s prospects. Unionised workers at Glencore Plc’s Lomas Bayas copper mine in Chile rejected a final contract offer and began government-facilitated mediation to avoid a strike. A blizzard of data in coming weeks is expected to show China’s economy ended a strong 2017 on a slightly softer note, but activity has likely remained more resilient than expected despite a punishing crackdown on industrial pollution and a cooling property market.

Nickel prices dropped on the back of increased supply from Indonesia and subdued demand from China.

Nickel on MCX settled down -0.84% at 794.3 on the back of increased supply from Indonesia and subdued demand from China. China will continue to “unswervingly” cut existing steel capacity and strictly ban the launch of any new steelmaking facilities in 2018, its government said. China has seen more higher-grade production of nickel pig iron (NPI) as the country imported more nickel ore from Indonesia in 2017. A blizzard of data in coming weeks is expected to show China’s economy ended a strong 2017 on a slightly softer note, but activity has likely remained more resilient than expected despite a punishing crackdown on industrial pollution and a cooling property market.

Oil prices edge up on lower U.S. rig count, but below recent highs.

Oil prices firmed on Monday on the back of a slight decline in the number of U.S. rigs drilling for new production, with crude holding just below near three-year highs reached last week.Traders said the gains were due to a slight decline in the number of U.S. rigs drilling for new production, which eased by five in the week to January 5, to 742, according to data from oil services firm Baker Hughes. Only top producers Russia and Saudi Arabia produce more. "The U.S. oil price is now into a range that is anticipated to attract increased shale oil production," said Ric Spooner, chief market analyst at CMC Markets in Sydney. "Traders may decide that discretion is the better part of valor while markets wait on evidence of what happens to the rig count and production levels over the next couple of months."

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