Gold gains slightly in Asia with China demand in focus

Gold gains slightly in Asia with China demand in focus.

Gold prices posted mild gains in Asia on Friday with demand from China eyed on anecdotal reports flows via Hong Kong have waned in recent months. According to the Federal Reserve's minutes for its 2-3 May meeting, released on Wednesday, most Fed officials said a further increase in short-term interest rates will be needed "soon", fuelling expectations that the U.S. central bank is poised to hike interest rates at its next meeting in June. According to investing.com’s Fed rate monitor tool, nearly 80% of traders expect the Fed to hike interest rates in June. A surge in the dollar, however, weighed on gold prices, which dropped to session lows, following bullish initial jobless claim data, boosting sentiment that the economy is continuing to show signs of a rebound in the second quarter.

India major Brass, Copper Scrap prices decline tracking weakness from Copper Futures.

India's major brass and copper scrap prices declined on Scrap Register Price Index as on Wednesday tracking the weakness in copper futures prices at India's Commodity Exchange as Moody’s Investors Service cut China’s sovereign credit rating for the first time in nearly three decades.

Zinc to trade in 168.6-173.4.

Zinc dropped tracking LME prices dropped by 0.9 percent lower at $2,635 on concerns that slowing economic growth in China. This week zinc prices surged on the back of a sustained crackdown in China's polluting steel industry, which fuelled worries about supply. The global zinc markets fell into a deficit in March after surpluses in February, data from the International Lead and Zinc Study Group (ILZSG) showed

Oil drops after OPEC-led output cut extension falls below expectations.

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs. Britain's Barclays (LON:BARC) bank said the price falls were a result of expectations ahead the meeting for longer or deeper production cuts and the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC's goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut. Analysts also said that the OPEC-led production cuts would support a further rise in U.S. output. OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and U.S. production and demand," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

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