Gold Falls In Asia As NKorea Risk At Bay, Copper Jumps

Gold Falls In Asia As NKorea Risk At Bay, Copper Jumps - Gold prices fell in Asia on Monday as investors moved away from risk trades on North Korea tensions, but copper staged gains as housing data from China showed countinued gains for prices albeit at a slower pace that the previous month. Last week, gold prices fell as investors shrugged off a rise in geopolitical uncertainty that followed after North Korea launched a missile over Japan on Friday while growing expectations that the Federal Reserve will hike rates later this year kept the precious metal on track for a weekly loss. A day after data showing inflation rose to its highest in seven months fuelling expectations of a December rate hike, gold prices remained on track to snap three-week winning streak. Losses, however, were limited by weak U.S. economic data. According to investing.com’s fed rate monitor tool, more than 50% of traders expect the Fed to hike rates in December. Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

Strong Power Investment to Boost Copper Demand - Copper demand will benefit from China’s heavy investment in power sector, said Zhou Sheng, International Copper Association (ICA)’s President for China. ICA: China’s Share in Global Copper Demand Keeps Expanding. China’s power grid investment totaled 540 billion yuan in 2016, over 60% of total power investment. China will invest 1.7 trillion yuan in power distribution during 2016-2020, which will further lift copper demand. Besides, copper use in power source side will also grow along with development of new energy vehicle market.

LME Nickel Prices to Look for Support - China’s RMB loans and informal financing in August topped market expectations, with M2 supply hitting record low. Forex receipts fell for 22 months in a row. LME nickel is expected to look for support from the 40-day moving average today.

Oil markets firm on rising refinery demand, falling U.S. rig count - Oil markets were firm on Monday and remained near multi-month highs reached late last week as the number of U.S. rigs drilling for new production fell and refineries continued to start up after getting knocked out by Hurricane Harvey."Demand forecasts from OPEC and IEA... continued to improve sentiment in the market. Refineries are also reporting a much better recovery from the recent hurricanes," ANZ bank said on Monday. Oil refineries across the Gulf of Mexico and the Caribbean were restarting after being shut due to hurricanes Harvey and Irma, which battered the region in the past three weeks.The refinery restarts are occurring "as signs emerge of stalling growth in the U.S. shale industry. The number of rigs drilling for oil in the U.S. fell sharply last week," ANZ said.

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