Gold Prices Down Slightly In Asia With Holiday Range Trade In Place

Gold Prices Down Slightly In Asia With Holiday Range Trade In Place.

Gold prices eased slightly in Asia on Tuesday with the market in a pre-holiday lull and awaiting a Bank of Japan policy review to conclude on Wednesday and a US tax cut package expected to pass this week. Overnight, gold prices rose on Monday, buoyed by dollar weakness on tax reform jitters despite reports suggesting Republicans lawmakers could vote on the final tax bill as soon as Tuesday. “We want to give you, the American people, a giant tax cut for Christmas. And when I say giant, I mean giant,” President Donald Trump said in a speech at the White House last week. Gold prices added to gains from last week which followed the Federal Reserve’s decision to hike rates for the third time this year. Some analysts expect the trend to continue amid central banks' accommodative monetary policy stance, and ongoing political uncertainty.

Zinc dropped tracking weakness in LME prices falling by 0.3 percent to $3,196 as traders booked profits.

Zinc on MCX settled down -0.22% at 204.9 tracking weakness in LME prices falling by 0.3 percent to $3,196 as traders booked profits. Around 6,000-8,000 mt of zinc ingots production at Huayuan county, Hunan province would be affected this month due to low raw material inventories and that local zinc mines. Now investors await the highly anticipated tax vote in Congress, which could lead to a cut in the corporate tax rate to 21% from 25% before the end of 2017.

Nickel jumped tracking a move in London after China said it would cut duties on some steel exports, which raised Spices expectations for demand.

Nickel on MCX settled up 2.21% at 755.40 after China boosted expectations of higher demand by pledging to cut export taxes on some steel products, but sizeable inventories capped gains. China said it would cut export taxes on some steel products and ditch those for sales abroad of steel wire, rod and bars from Jan. 1, which could boost shipments.

Oil range-bound as disruptions offset by rising U.S. output.

Oil markets edged up on Tuesday as the Forties pipeline outage in the North Sea and voluntary production restraint led by OPEC supported crude, although soaring output in the United States put a cap on gains. Some upward pressure was taken off Brent after a nationwide oil worker strike was called off in Nigeria, traders said. Despite this, crude has been generally supported by the ongoing Forties pipeline system outage in the North Sea, which provides crude underpinning Brent futures. "The Forties pipeline closure will continue to put a floor under Brent crude," said Jeffrey Halley, senior market analyst at futures brokerage Oanda in Singapore. Further price support has been coming from voluntary supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers including Russia. As a result of the production restraint and disruptions, oil inventories are falling globally.

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