Gold on track to extend weekly losing streak despite dollar dip

Gold on track to extend weekly losing streak despite dollar dip.

Gold prices remained unchanged on Friday, as safe haven demand remained subdued, despite a pair of disappointing U.S. economic reports raising concerns about the outlook of U.S. economic growth in the second quarter U.S. homebuilding fell for a third straight month in May to the lowest level in eight months, suggesting that subdued housing activity could dent economic growth in the second quarter. Housing starts dropped 5.5% to a seasonally adjusted annual rate of 1.09 million units, the Commerce Department said on Friday, well below forecasts of a 4.1% increase. In a separate report the University of Michigan said its consumer sentiment gauged fell to 94.5 in early June from 91.1 in May. Analysts had expected a reading of 97.1. Gold struggled, however, to capitalize on the slump in the dollar as investor sentiment on the precious metal remained negative, after the Federal Reserve on Wednesday signaled that an additional rate hike may be appropriate.

Copper Will Not Get Support from Housing Market, SMM Reports.

China’s housing market is cooling down following a series of restrictive policy, and such condition is expected to be continuing during the rest of the year. SMM Copper Demand Surprise Index: China Copper Demand to Change Little YoY in June 2017. The coolingdown of housing market, one of major copper consumers, will be gradually felt by copper market. The housing market after a strong performance in 2016 will head into a steady drop, and the copper market will also lose a big price supporter.

NBS: China Alumina Output Jumps in May.

National Bureau of Statistics (NBS) data showed China’s alumina output rose significantly in May. Chalco Hikes Aluminum Prices across Major Markets on June 16. Alumina production nationwide grew 19.6% year-on-year to 6.44 million tonnes in May, and surged 20.8% year-on-year to 30.9 million tonnes in the first five months of this year.

Crude settles higher but posts weekly loss amid oversupply jitters.

Crude futures settled higher on Friday, but ended the week in negative territory, as investors continued to doubt whether Opec and its allies’ global pact to curb production would stem the glut in supply amid rising U.S. output. The Baker Hughes report came after a duo of inventory updates from both Opec and the International Energy Agency earlier in the week, showing that production remained elevated while stockpiles continued to swell. Opec said Tuesday, that output from the group rose by 336,000 barrels per day in May to 32.14m barrels per day while the International Energy Agency said it expects production to grow by 700,000 bpd this year.

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