Gold Dips In Asia, But Well Supported On Middle East Tensions, APEC Eyed

Gold Dips In Asia, But Well Supported On Middle East Tensions, APEC Eyed.

Gold dipped in Asia on Friday, but remained well supported on Middle East tensions between Iran and Saudi Arabia and await a summit in Vietnam among Asia-Pacific nations. Overnight, gold prices rose to three-week highs on Thursday amid a slump in the dollar on fears that the Senate would delay corporate tax cuts until 2019. Gold prices added to gains from Wednesday’s session after the dollar fell on reports that Senate Republicans on Thursday will propose delaying a cut in the corporate tax rate from 35% to 20% until 2019. The news of a possible delay to corporate tax cuts halted recent risk-on sentiment, fueling a flight-tosafety as traders appeared to unwind their bullish bets on riskier assets which followed on expectations that President Trump’s tax-reform plans would be enacted before year-end. Gold prices are sensitive to moves lower in the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency, thus, increases demand. Also supporting demand for safe-haven gold was ongoing political unrest in the Middle East after Saudi Arabia advised citizens not to travel to Lebanon and urged the international community to impose fresh sanctions on Iran.

Aolong Zinc: Bullish at Zinc Oxide Market Next Year.

SMM Wang yanlong, General manager of Aolong Zinc, says the environmental protection has been normalizing and will become stricter. According to new standard. It takes at least three years to do environment assessment again and initiate the project. Hence, increase of capacity needs time. Even if the capacity increases, industrial park also needs to do environment assessment with projects in it. So I am quite bullish at zinc oxide market next year.

11.6 Billion Yuan Aluminium Extruded Section and Deep-processing Project Settles.

On Nov.9th, Wuqiang County signed the contract with Beijing Peace Aluminium Group on the co-investment project valuing at 11.6 billion yuan of aluminium extruded section and deep-processing. After the project is completed, the annual sales will reach 25.1 billion yuan, with 3 billion profits and taxes.

Oil markets stable, but analysts expect high volatility ahead.

Oil markets were little changed on Friday, supported by ongoing supply cuts and strong demand, although the prospect of rising U.S. shale output capped prices around recent gains.Analysts said the high prices were a result of efforts by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to withhold supplies to tighten the market, as well as strong demand and rising political tensions. "Oil prices have rallied sharply over the past week. The latest catalyst for this move higher was the sharp rise in geopolitical tensions last weekend, with growing confidence in an OPEC extension and strong oil demand fueling the rally previously," said U.S. bank Goldman Sachs (NYSE:GS). But there were some words of caution. "This (oil upward) move may be short lived as it is possible that shale production can be brought back on stream relatively quickly," said Goldman's peer Morgan Stanley (NYSE:MS).

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