Gold edges higher in Asia as investors await Fed views

Gold edges higher in Asia as investors await Fed views.

Gold prices edged higher in Asia on Wednesday with the latest Fed view on interest rates awaited by the market, particularly to understand if weaker growth than expected and a slower legislative process on tax cuts and spending plans by the Trump administration has had an impact on forecasts for this year. Overnight, gold prices pared losses on Tuesday, benefiting from a weaker dollar, as investors’ appetite for riskier assets eased slightly ahead of the Federal Reserve’s interest rate decision on Wednesday.

Gold bounced back from a three-week low, as uncertainty regarding the tone of the Federal Reserve statement, due to be released on Wednesday, alongside an interest rate decision, capped losses. Recent economic data have not been supportive of faster rate hikes as manufacturing, and construction spending activity fell in April while investors braced for a jobs report on Friday. Economists’ forecast that the Fed will leave its benchmark rate unchanged but investors are likely to parse through the Federal Reserve statement for any hints concerning a June rate hike.

ICSG: World Copper Cathode Deficit Seen at 147,000 tonnes in 2017, to Expand in 2018.

The International Copper Study Group (ICSG) said at its monthly report global copper cathode supply will be in 147,000 tonnes deficit in 2017, 100ppi.com reported.

Chalco Builds Integrated Aluminum Project in Guangxi.

Chalco is building alumina-aluminum integrated project in Fangchenggang, Guangxi, China Power News Network reported. The project will be built in two phases. The first phase, including 2 million-tpy alumina, 1 million-tpy aluminum and 3.35 million power generating units, is scheduled to enter operations in 2019. The second phase, including 2 million-tpy alumina and 1 million-tpy aluminum, is scheduled to come online in 2022.

Crude rebounds in Asia as API draw aids sentiment anew on demand.

Crude prices gained in Asia on Wednesday in a rebound from a sharp drop of more than 2% overnight after a surprise draw in industry estimates of U.S. inventories, but the market remained cautious ahead of official figures. The industry figures are followed Wednesday by official data from the Energy Information Administration. The two sets of figures often diverge and have in the past two weeks whipsawed the market. Analysts, in upward revised estimates, expect crude oil inventories dropped 2.333 million barrels at the end of last week, while distillates rose by 723,000 barrels and gasoline supplies increased by 1.322 million barrels.

Overnight, crude futures settled more than 2% lower on Tuesday, as investors weighed the impact of an OPEC-led deal to drain the glut in supply against the uptick in global output.

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