MCX MORNING NEWS UPDATES - 5 jun 2018

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Gold Prices Drop As Dollar Stays Firm -  

Gold prices were lower on Tuesday as the dollar stayed firm and remained well above the 94 value. Dollar-denominated assets such as gold are sensitive to moves in the dollar. A gain in the dollar usually makes gold more expensive for holders of foreign currency, and thus decreases demand for the precious metal. On Monday, the White House confirmed a time for U.S. President Donald Trump to meet with his North Korean counterpart Kim Jong-un. The two are set to meet at 9 a.m. Singapore time on June 12. Deemed as a safe-haven investment, gold usually attracts demand in times of geopolitical uncertainty. As tensions on the Korean peninsula seemed to ease, demand for gold also decreased.


Environmental review to affect secondary lead output in Hebei, Henan - 

An estimated 2,500 mt/day of secondary lead output will be affected in the following month as environmental checks on acid-related companies in Hebei and Henan province intensify, SMM learned. Supply of secondary lead will remain tight in the near term as environmental supervision is likely to extend to other provinces, SMM expects. This followed after inspection teams from the central government settled in Hebei on May 31 and in Henan on June 1 to review previous rectification works. The inspection teams will be stationed for one month.


Zinc prices gained tracking firmness in LME prices as the US dollar weakened - 


Zinc on MCX settled up 1.42% at 210.65 as support seen from LME zinc prices which finished with a 0.7 percent gain at $3,122 as a six-week rally in the dollar appeared to stall. A stronger dollar makes metals more expensive for buyers with other currencies. Sentiments gained as Some showed concerns that another round of environmental check will affect their production as China started to review on previous environmental checks across 10 provinces from Monday May 28. Jiangsu is one of the 10 provinces. If environmental inspection teams from the central government are established in Jiangsu, Xuzhou will be one of the first cities in the province to be impacted. Since April 11, steel mills across Xuzhou have been suspended for rectifications and cannot resume production unless they pass checks conducted by the environmental inspection team.

Oil Prices Gain, But Expectations of Higher OPEC Supplies Weigh On Sentiment -


 Oil prices climbed on Tuesday despite growing U.S. production and expectations of higher OPEC supplies.The Organization of the Petroleum Exporting Countries (OPEC) will meet on June 22 in Vienna to discuss with non-OPEC members including Russia whether they would raise production. The group is expected to agree to raise output amid concerns over Iranian and Venezuelan supply, according to reports last month. The news was cited as headwind for oil price, which fell nearly 2% in the previous session. "It's all about supply, whether it's OPEC raising output or U.S. increasing production, all roads lead to higher global oil supplies, which is leaving oil traders shaking in their boots," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

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