Gold climbs after dovish ECB stance.- 21 July 2017

Commodity Intraday Tips

Gold climbs after dovish ECB stance.  
Gold powered up to three-week highs overnight in Asia before flattening out during morning trade. The catalyst for the spike was a unanimous decision by the European Central Bank not to change their guidance on monetary policy or discuss changes to an ongoing stimulus program for the time being. The dovish stance was not out of tune with the tone taken by the US federal Reserve. The plunge in the greenback was slowed down by expectations, fuelled last week by the testimony of US Federal Reserve Chair Janet Yellen, that any monetary tightening in the US would happen slowly and reports from China that suggested growth there is slightly ahead of target for the year. Last week, gold prices rose to two-week highs as political uncertainty in the U.S., which has extended to this week, made it more attractive as a safe haven against the falling dollar.  
India Brass, Copper Scrap prices decline tracking the weakness in Copper Futures.  
India's major brass and copper scrap prices declined on the Scrap Register Price Index as on Wednesday tracking the weakness in copper futures prices at India's Multi Commodity Exchange, after the U.S. dollar rose but higher steel prices and upbeat Chinese data boosted expectations of strong demand. The U.S. dollar firmed, making dollar-denominated commodities slightly more expensive for holders of other currencies and potentially curbing demand. The greenback was still near 10-month lows, though.  

Chalco Cuts Aluminum Prices in Major Markets.   
China Aluminum International Trading Co. (Chalco Trading) lowered aluminum prices it offered in major markets today after yesterday’s hike. On a monthly basis, primary aluminum output rose in China in June, but fell outside China, data from the International Aluminium Institute (IAI) showed. Alumina supply & demand balance in China will depend on how much more aluminum capacity will be closed for the rest of the year, SMM understands.  
Oil prices flat in Asia as market looks to producers' meeting. 
Oil prices settled down in Asia after hitting month-long highs overnight and ahead of a meeting of the oil producers on Monday.The rally in oil on Thursday, which took prices to highs not seen since June 7, was also powered by expectations that oil producers might cut supplies. OPEC and non-OPEC producers are scheduled to meet Monday in Russia and traders are watching for any signs that Saudi Arabia, the largest producers of crude in the world, may cut its output. In May, OPEC and a number of non-OPEC members like Russia agreed to tackle oversupply in global crude market by cutting production by 1.8 million barrels per day between January 2017 and March 2018. Earlier this week, tiny producer Ecuador signalled it might not abide by the cuts, causing fears that other larger producers might follow suit. 

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