Gold Gains In Asia After NKorea Missile Test Raises Risk

Funds Need to Buy to Stop the Price Slide (COPPER)- December Comex High Grade Copper futures are trading flat early Friday after another huge break on Thursday. Traders are saying that commodity funds are stepping in to stem the price slide. Earlier in the week, it was commodity fund liquidation driving prices sharply lower. On Thursday, copper fell to a four-week low after some weaker than expected data from China pointed to slowing demand from the metal’s top consumer. Chinese data showed slower than expected growth in investment, factory output and retail sales but a rebound in property sales and construction starts is likely to keep China’s overall growth relatively robust and on target. Hedge and commodity funds had basically saturated the market with long positions and the market ran out of buyers. They had expected the recent momentum to carry the Chinese economy for at least a month longer, given the recent strong PMIs and price action. However, speculator positions grew too large for the market to handle and something had to give.

Gold Gains In Asia After NKorea Missile Test Raises Risk - Gold markets were choppy over the course of the session on Thursday, as we continue to see resistance just above. I think that the market breaking above the 1003 and $35 level will be very positive, and perhaps trying to send the market to fill the gap above that formed at the beginning of the week. Alternately, the market could go down to the $1300 level, and a move below the $1315 level should send the market looking for that. Ultimately, this is a very choppy market, but it looks like the sellers have taken control. Gold prices gained in Asia on Friday after North Korea fired a missile over the northern Japan island of Hokkaido and into the Pacific Ocean, drawing a new line in the sand for the U.S. and allies to respond. Overnight, gold prices rose for the first time in three days after the dollar came under pressure but gains were capped as data showed the pace of U.S. consumer prices hit a 7-month high in August raising expectations for a Federal Reserve rate hike later this year. Gold prices halted a three-day losing streak as the dollar eased despite inflation and jobs data topping expectations pointing to an improving U.S. economy which could influence the Federal Reserve to stick to its plan to hike rates at least once more this year. Some analysts believe, however, the Fed will taper its rate hike outlook as inflation will continue to undershoot the central bank’s expectations, boosting demand for gold.

China Qualified Secondary Lead Plants to Expand Capacity, SMM Reports - Many large domestic secondary plants that have required licenses plan to expand their capacities, SMM analyst said at the 2017 SMM Secondary Lead-acid Battery Summit. Anhui Huaxin Lead Industry Group, Anhui Huabo Renewable Resources Technology and Taihe Dahua Energy Technology all plan to build second phase projects. LME Lead Canceled Warrants Fall to 8-Month Low. New Chunxing Resource Recycling also has capacity expansion plans in the second half of the year.

TALCO Eyeing Higher Aluminum Production - TALCO plans to expand aluminum production, said Igor Sattarov, spokesperson for the company. The company plans to increase its aluminum output to 300,000 tones by 2020. Possibility is high for the company to achieve the target, due to current positive market environment, positive market outlook and introduction of new aluminum processing technology, Igor Sattarov said.

Crude Oil Down In Asia On NKorea Missile Test - Crude oil fell in Asia on Friday after North Korea tested an intermediate range ballistic missile over the Japanese island of Hokkaido and into the Pacific Ocean in the latest tit-for-tat with the U.S. and its allies for pushing UN economic sanctions, with investors looking ahead to the latest weekly U.S. rig count data. Overnight, crude oil prices settled at seven-week highs on Thursday buoyed by a pair of reports earlier in the week suggesting that rising global oil demand could stem the glut in crude supplies. The fall in Opec output came as a relief to investors, many of whom had questioned the oil-cartel’s commitment to tackle excess supplies following a drop in the group’s the rate of compliance with the global accord to curb production. "Stronger demand and supply restrictions from OPEC and Russia are the main reasons for the oil price upsurge," said Forex.com analyst Fawad Razaqzada.

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