Oil Prices Stable On Healthy Demand But Oversupply Looms - 15 Mar 2018

Gold settle flat on an expectation of higher interest rates, but downside seen limited by safe-haven buying after the sudden dismissal of U.S. Secretary of State Rex Tillerson -  Gold on MCX settled up 0.09% at 30405 held steady in the range while sentiments improved after the release of mixed U.S. economic reports and as investors remained cautious after the sudden firing of U.S. Secretary of State Rex Tillerson. From the data point the U.S. Commerce Department reported on Wednesday that retail sales fell 0.1% in February, compared to expectations for a 0.3% rise Rising inflation could add pressure on the Fed to speed up its rate rises, which could lift the dollar, though strangle the stock market. Gold, in turn, although negatively affected by higher interest rates, could attract hedging demand against too-hot inflation. The impact of trade policy has also served as a backdrop to recent trading. Tillerson will be replaced by CIA Director Mike Pompeo. Investors also remained cautious after Trump announced plans to impose tariffs on up to $60 billion of Chinese imports, specifically targeting the technology and telecommunications sectors.

Copper prices gained as support seen from expectations of stronger demand in top consumer China - Copper on MCX settled up 0.73% at 454.25 as support seen from expectations of stronger demand in top consumer China. Prices were supported by news of industrial action at First Quantum’s Cobre Panama project, “which has reduced the level of work being performed on the project”. The workers in the largest union at Antofagasta Plc’s Los Pelambres copper mine rejected an offer for a new labour contract, paving the way for striking action. Workers and the company would still have to go through a meditation process with the government to reach a second deal. Strong demand from the growing electric economy could be undermined by supply disruptions if wage contracts can’t be negotiated across the major producer. Also China’s lower copper imports in February weakened the sentiment on copper.

Oil Prices Stable On Healthy Demand But Oversupply Looms - Oil prices were mostly flat on Thursday morning in Asia, held steady by healthy global demand but capped by the ongoing surge in U.S. production.Prices were supported by healthy demand. The Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday that oil consumption was expected to grow by 1.62 million barrels per day (bpd) in 2018. But overshadowing this market optimism is the relentless increase in U.S. crude output, which hit another record last week by climbing to 10.38 million bpd, up by more than 23% since mid-2016. Commercial crude rose by 5 million barrels, at 430.93 million barrels. U.S. crude production has already topped that of top exporter Saudi Arabia, and by late 2018 is expected to surpass 11 million bpd, overtaking top producer Russia.

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Oil prices were flat on Wednesday morning in Asia, having edged up slightly after two days of decline - 14 Mar 2018

Gold prices turned positive as the U.S. dollar lost ground after news that U.S. President Donald Trump replaced Secretary of State Rex Tillerson -  Gold on MCX settled up 0.15% at 30377 as prices saw some safe-haven demand due to increasing concerns about turmoil in the Trump administration. U.S. Secretary of State Rex Tillerson was fired by President Trump prompted some fresh safe-haven in gold and silver markets. The firing of a Trump cabinet official comes on the heels of Trump’s chief economic advisor quitting last week. Trump is seeking to impose tariffs on up to $60 billion of Chinese imports and will target the technology and telecommunications sectors, two people who had discussed the issue with the Trump administration said. Gold was sold at a discount in India as demand remained subdued for a fourth straight week while buying in the rest of Asia picked up as prices fell for a third consecutive week. 

Copper prices gained tracking firmness in LME prices finished 0.5 percent higher at amid weakness in dollar - Copper on MCX settled up 0.16% at 450.95 recovered from the day's low as support seen after the update that reliable supply of copper from the world’s largest producer, Chile, is under threat as unions face broad wage renegotiations across top global miners. Strong demand from the growing electric economy could be undermined by supply disruptions if wage contracts can’t be negotiated across the major producer. Also China’s lower copper imports in February weakened the sentiment on copper. While New Federal Reserve Chair Jerome Powell said in his Congress testimony that hiking interest rates four times this year would be considered a "gradual pace", bolstering expectations of a March rate hike.

Oil Prices Stable With Strong China Data - Oil prices were flat on Wednesday morning in Asia, having edged up slightly after two days of decline.China’s industrial output rose 7.2% in the first two months of the year compared with the same period last year, surpassing expectations of a 6.1% growth. At the same time, during the spring season now starting, U.S. crude inventories are not rising as much as expected, implying healthy demand. However, oil markets remain relatively weak. Prices have strayed far from their January highs of almost $67 for WTI and over $70 per barrel for Brent. While the Organization of the Petroleum Exporting Countries (OPEC) has been propping up prices by cutting output, the U.S. has been capping prices by ramping up production.

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Gold prices fell as the dollar held steady after data showed the U.S. economy added a larger-than-expected number of jobs in February - 13 Mar 2018

Gold prices fell as the dollar held steady after data showed the U.S. economy added a larger-than-expected number of jobs in February -  Gold on MCX settled down -0.23% at 30332 tracking weakness from Comex Gold prices which turned lower as market sentiment remained supported by expectations for a less aggressive rate hike policy by the Federal Reserve. The dollar initially strengthened after the Labor Department reported on Friday that the U.S. economy added 313,000 jobs last month, beating economists’ forecasts of 200,000. It was the largest monthly increase in one-and-a-half years. However the report also showed that average hourly earnings rose by just 0.1% in February for an annual rate of 2.6%, down from 2.8% in January. The slowdown in wage growth dampened expectations for four rate hikes by the Federal Reserve this year. Meanwhile the U.S. dollar index was steady at 90.13, not far from Friday's one-week highs of 90.36. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion. In the week ahead, investors will be focusing on Tuesday’s U.S. inflation data to gauge how it will affect the outlook for monetary tightening in the coming months. 

China’s aluminium oxide imports fall to new low in Jan - China's imports of aluminium oxide in January fell for three consecutive months and touched a new low of 74,000 mt since August 2017. This is down 48.6% month on month and 72.3% year on year, according to China Customs. Higher prices of imports, over prices of domestic supplies, accounted for the decline. Imports are likely to remain weak in February given the impact of the Chinese New Year (CNY) holiday and as profit margins between domestic supplies and imports widen. SMM expects imports to remain low in March in view of the 50% production cut at Hydro’s Alunorte aluminium oxide plant in Brazil. The cur will lower supplies of foreign aluminium oxide.

Oil prices fall on relentless rise in U.S. crude output - Oil prices fell on Tuesday, extending losses from the previous session, as the inexorable rise in U.S. crude output weighed on markets.Both crude benchmarks dropped by around 1 percent in their Monday sessions. "Oil prices fell on the back of concerns that surging U.S. production ... could push inventories in the U.S. higher," ANZ bank said on Tuesday. U.S. crude oil production soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia. U.S. production is expected to rise above 11 million bpd by late 2018, taking the top spot from Russia, according to the International Energy Agency (IEA). The rising U.S. output comes largely on the back of onshore shale oil production. U.S. crude production from major shale formations is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) said in a monthly report on Monday.

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Gold settled flat recovering from lows as disappointing growth in U.S. wages tempered pressure from a jump in domestic jobs-12 Mar 2018

Gold settled flat recovering from lows as disappointing growth in U.S. wages tempered pressure from a jump in domestic jobs - Gold on MCX settled flat by -0.09% at 30401 recovering from lows as disappointing growth in U.S. wages tempered pressure from a jump in domestic jobs. The latest snapshot of the U.S. labor market showed strong job growth and a higher participation rate, with the nation adding 313,000 new jobs in February. But the 12-month increase in pay slipped to 2.6% from a revised 2.8% in January. Gold was sold at a discount in India as demand remained subdued for a fourth straight week while buying in the rest of Asia picked up as prices fell for a third consecutive week. Dealers in India were offering a discount of up to $3 an ounce over official domestic prices, compared with a premium of $2 last week. India’s gold imports in February dropped a quarter from a year ago to 63 tonnes as higher prices curtailed demand in the world’s second-biggest consumer of bullion. Meanwhile in China, there was some good buying through the mid-week, with gold selling at a premium of $6-$8 over benchmark rates this week, down slightly from $8-10 last week.

Short supplies of nickel concentrate in China to end by 2021 - Supply shortages of nickel concentrate in China are likely to end by 2021, showed SMM data. Global supplies fell in recent years as prices of nickel weakened. The decline in imports of nickel concentrate  led to the subsequent decrease in supplies in 2015-2017. In addition, a major producer of nickel pig ingot (NPI) in south China raised its use of nickel concentrate after Indonesia imposed an export ban on nickel ore in 2014. SMM expects China’s nickel concentrate supplies to grow as new mines in Qinghai province and Russia are set to open in 2020. Imports of nickel ore will also rise in 2018 after Indonesia's export ban eased in 2017. Demand for nickel concentrate will rebound when Indonesia reinstates the ban on nickel ore exports in 2022.

Oil edges up on reduced U.S. drilling activity, booming job market - Oil markets edged up on Monday on the back of a drop in the number of U.S. rigs drilling for more production and as the U.S. economy continued to create jobs, which industry hopes will drive higher fuel demand."A falling rig count and the strong employment data may have helped support prices," said William O'Loughlin, investment analyst at Rivkin Securities.In oil markets, U.S. energy companies last week cut oil rigs for the first time in almost two months , with drillers cutting back four rigs, to 796, Baker Hughes (N:GE) energy services firm said on Friday.

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Oil Prices Rise as Trump Prepares to Meet North Korea’s Kim -9 Mar 2018

Gold dropped as a leading dollar index strengthened and investors awaited the latest monthly data on U.S. employment - Gold on MCX settled down -0.15% at 30429 slipped lower on Thursday, as the dollar showed little reaction to downbeat U.S. data amid sustained uncertainty over U.S. President Donald Trump's proposed tariffs. Sentiments remained lower for Gold after the European Central Bank on Thursday, as expected, left interest rates unchanged Thursday, saying it would continue its program of asset purchases through September, “or beyond, if necessary.” The bank did drop language saying it was ready to expand quantitative easing if conditions worsened. Also Monetary policy differentiation continues to influence trading. Prices for the metal had declined after the release of the Fed Beige Book, which offered a snapshot of domestic economic activity. Among the findings of the report, which came out after gold futures settled, growth remained at a modest to moderate pace in January and February. While overall, it has certainly been a “roller coaster week for the yellow metal, as the combination of political uncertainty and U.S. rate hike expectations attracted both buyers and sellers, much attention will be directed towards Friday’s U.S. nonfarm payrolls report, which could play a role in how gold concludes this week.

Strong opposition to US tariffs on steel, aluminium: China Ministry of Commerce - China warned that it will take a strong stance to protect its interests against US President Donald Trump's tariffs on steel and aluminium imports. China's commerce ministry spoke against the tariffs on Friday March 9. Director of the commerce ministry's trade remedy and investigation bureau, Wang Hejun, said that the tariffs will jeopardise multilateral trade in the World Trade Organization (WTO) and that they will "bring a serious impact on normal international order". “If the US measures impair the interests, China will join efforts with other affected countries to safeguard its own benefits," he added.

Oil Prices Rise as Trump Prepares to Meet North Korea’s Kim - Oil prices were up Friday morning in Asia with news that North Korean leader Kim Jung Un would meet with U.S. President Donald Trump.South Korea’s national security chief briefed White House officials on talks between Seoul and Pyongyang on Thursday, and said that Kim has pledged to refrain from further nuclear or missile tests. Kim and Trump would likely meet by May at a place and time to be determined. The White House said Trump would accept the invitation. Asian stock markets rose following the news, pulling crude oil futures along with them. Beyond geopolitics, oil markets were mainly affected by soaring output from the U.S., which has risen by 23 percent since mid-2016 to 10.37 million barrels per day (bpd). U.S. oil production has already surpassed that of top exporter Saudi Arabia, and is expected to surpass that of top producer Russia by 2019. This would pose a significant challenge for the Organization of the Petroleum Exporting Countries, which has been trying to prop up oil prices by cutting output.

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Oil Prices Rebound With Decline in Gasoline Inventories - 8 Mar 2018

Gold prices slipped as upbeat data on U.S. private-sector jobs helped the U.S. dollar reverse losses fueled by news that Gary Cohn, will leave his post - Gold on MCX settled down -0.32% at 30474 as the dollar steadied on upbeat economic news and hawkish remarks from Federal Reserve officials. Also upbeat data on U.S. private-sector jobs helped the U.S. dollar reverse losses fueled by news that Gary Cohn, the top economic adviser to President Donald Trump, will leave his post. Gold prices fell even further after the release of the U.S. Federal Reserve’s Beige Book, which offers a snapshot of domestic economic activity. Among the report's findings was "modest to moderate" growth across the country. Meanwhile the White House said that President Donald Trump may exempt Canada, Mexico from tariffs, easing days of investor fears over the prospect of a global trade war. "We expect that the President will sign something by the end of the week. And there are potential carve-outs for Mexico and Canada based on national security and possibly other countries as well based on that process," said Press Sec. 

Copper prices dropped as the market looked ahead to key data from top consumer China - Copper on MCX settled down -0.62% at 452.05 while prices recovered from the day’s low as support seen after weaker dollar and expectations of strong demand in China. Earlier in the day prices seen pressure as London Metal Exchange copper dropped on concerns that the U.S. could slap down import tariffs on steel, impacting zinc, used in galvanised steel and nickel, used in stainless steel, as well as aluminium have dragged those metals in the past week. While US President Donald Trump plans to offer Canada and Mexico a 30-day exemption from planned tariffs on steel and aluminium imports, which could be extended based on progress in NAFTA talks, a White House official said on Wednesday night. A labor strike in February 2017 at BHP Billiton's Escondida copper mine, the world's largest, sharply reduced copper exports until a deal was struck with the union in March. State-run miner Codelco is the country's top copper producer.

Oil Prices Rebound With Decline in Gasoline Inventories - Oil prices rebounded slightly Thursday morning in Asia, pulled up by a report from the Energy Information Administration (EIA) that gasoline inventories had dipped.Oil prices had dropped following a decline of more than 1 percent in S&P 500 Futures, triggered by the resignation of key free-trade advocate Gary Cohn, economic adviser to U.S. President Donald Trump, on Tuesday. The EIA report came out a day after the 1-percent drop in S&P futures. The authority reported that gasoline stockpiles had declined by 800,000 barrels in the reporting period, compared with a 2.5-million-barrel build in the previous week. Since the start of the year, there has been only one week featuring a drop in gasoline inventories, while the total build since then stood at 17.8 million barrels.

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Oil Prices Rise Ahead Of World’s Largest Energy Industry Conference- 5 Mar 2018

Gold Prices Gain As Dollar Continues To Fall After Trump’s Tariff Plan - Gold prices continued to gain momentum as U.S. President Donald Trump’s announcement regarding tariffs on imported steel and aluminum sparked a sell-off in equities and the dollar. U.S. President Donald Trump’s tariff policy on steel and aluminium caused concerns to global investors, as the administration stressed over the weekend that there would be no exclusion for any country. The dollar has been sliding since Trump announced the tariffs last Friday. The dollar opened in Asia morning at a low level despite its short-lived rally last week when new Federal Reserve head Powell confirmed the tightening policy. Gold prices were under pressure last week following Federal Reserve chair Jerome Powell’s hawkish comments, but clawed back most of its weekly loss last Friday in reaction to a weaker dollar and lower equity prices. Dollar-denominated assets such as gold are sensitive to moves in the dollar, as a fall in the dollar makes gold 

cheaper for holders of foreign currency and thus, increases demand for the precious metal.

Copper settled flat with the relatively stronger dollar and thin liquidity restricting the metals - Copper settled flat with the relatively stronger dollar and thin liquidity restricting the metals. The market largely shrugged off positive data from the private Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for February, which beat expectations to reach its highest in six months. A day earlier China’s official factory activity reading raised concerns of a sharper than expected slowdown. The main union of Chile´s Los Pelambres copper mine will vote next week on a new contract its members have not yet received and which could lead to a strike if they refuse. China’s metal scrap imports in January slumped to 490,000 mt, down 25.1% year on year, according to Chinese customs data. This also marked the lowest monthly level since February 2016. Copper scrap imports stood at 200,000 mt last month, down 27.5% from January 2017. China has approved plans to build a rail link connecting the capital Beijing with the new economic zone of Xiongan in Hebei province, with total investment expected to reach 33.53 billion yuan ($5.3 billion), the country’s top planning body said.

Oil Prices Rise Ahead Of World’s Largest Energy Industry Conference - Oil prices rose Monday morning in Asia with expectations that oil producers would discuss further how to clear the global oil excess during a meeting between OPEC and U.S. shale companies.The largest energy industry conference, CERAWeek, begins on Monday. Oil ministers from the Organisation of the Petroleum Exporting Countries (OPEC) and other global oil players will gather in Houston for the event. On the sidelines of the conference, a dinner is expected to be held on Monday between OPEC officials and U.S. shale firms. Soaring shale oil production in the U.S. has hampered OPEC’s attempt to ease the global oversupply and prop up prices. This month, the number of oil rigs drilling for new production in the U.S. rose to 800 for the first time since April 2015, pointing to more increases in output to come. 

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Gold Prices Fall As Dollar Strengthens Ahead of Powell’s Second Appearance - 1 Mar 2018

Gold Prices Fall As Dollar Strengthens Ahead of Powell’s Second Appearance - Gold prices dipped on Thursday as the dollar remained strong following Federal Reserve Chairman Jerome Powell’s comments that spurred concerns of faster-than-expected rate hikes, while investors await his second appearance this week later in the day. Gold suffered its first monthly loss last month since October. Buying interest in the precious metal has been limited as concerns over rising interest rates put pressure on the metal because bullion pays no interest. Meanwhile, the dollar continued its bullish trend amid improving sentiment on the pace of rate hikes.

U.S. steel, aluminum executives invited to White House for possible announcement - Several top U.S. steel and aluminum executives have been invited to the White House on Thursday for what could be a major trade announcement, according to two people familiar with the meeting. U.S. President Donald Trump has vowed to take steps to crack down on imports of steel and aluminum and has been considering imposing hefty tariffs on imports of the metals from China and other countries. The possible announcement comes as top aides to Trump meet with a senior envoy of Chinese President Xi Jinping at the White House. The U.S. Commerce Department on Feb. 16 recommended that Trump impose stiff curbs on steel imports from China and other countries and offered the president several options ranging from global and country-specific tariffs to broad import quotas.

Copper dropped as China's manufacturing growth slowed more than expected - Copper on MCX settled down -1.33% at 457.2 as China's manufacturing growth slowed more than expected. Growth in China’s manufacturing sector in February slowed more than expected to the weakest in over 1-1/2 years as Lunar New Year holidays disrupted business activity and tougher pollution rules curtailed factory output. China is the world’s top metals consumer and its manufacturing sector is often seen as the main bellwether for base metals demand. Chile produced slightly less copper in January than it did in December, the government said. The National Development and Reform Commission (NDRC) said the rail project is designed to carry 50 million passengers a year and will involve the construction of five new stations and the laying of 92.4 kilometers (57 miles) of new track.

Oil Prices Flat In Asia Morning, Capped By Growing U.S. Production - Oil prices were mostly flat Thursday morning in Asia, rising and dipping only marginally amid larger-than-expected U.S. crude build-up.U.S. crude inventories increased by 3 million barrels last week, surpassing analyst expectations for a build of 2.1 million barrels, according to weekly data by the Energy Information Administration (EIA). Oil output from the Organization of the Petroleum Exporting Countries (OPEC) fell to a 10-month low in February, but soaring oil production in the U.S. has simply filled the gap in supply created by OPEC, putting a lid on prices. OPEC has been reducing output by around 1.2 million barrels per day (bpd) since January 2017, and the pact will run until the end of 2018. Continued increase in oil production in the U.S. has, however, hampered OPEC attempts to ease the global oversupply.

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Copper fell on Tuesday as the dollar edged higher after Federal Reserve Chair Jerome Powell’s debut testimony before Congress- 28 Feb 2018

Could Have Enough Downside Momentum to Challenge $1309.00 then $1306.60.

Gold markets went sideways initially during the trading session on Tuesday, but as Federal Reserve Chairman Jerome Powell suggested that the central bank was willing to continue interest rate hikes, the US dollar picked up a bit of steam. Gold markets fell significantly after, is coming from Federal Reserve Chairman Jerome Powell, suggesting that the interest rate hikes would continue, and that of course moves the value of the US dollar higher. However, this should not be much of a surprise, so I think it’s only a matter of time before the buyers come in and pick up value.

Copper fell on Tuesday as the dollar edged higher after Federal Reserve Chair Jerome Powell’s debut testimony before Congress.

Copper fell on Tuesday as the dollar edged higher after Federal Reserve Chair Jerome Powell’s debut testimony before Congress, weighing on assets priced in the U.S. currency. Markets expect the Fed to hike interest rates three times this year, and Powell's remarks seemed to indicate the central bank remains on a tightening path. He also said the economy remains strong. This is Powell's first speech to Congress since taking over as chairman in early February. He succeeded Janet Yellen, who served one full term but was not reappointed by President Donald Trump. London Metal Exchange copper was down 0.9 percent at $7,049 a tonne. The cost to roll aluminium for a day hit its highest since late 2016 on Monday at $11 and remains highly elevated at $10 a tonne. On-warrant aluminium stocks, or those not earmarked for delivery, in London Metal Exchange warehouses fell by 23,425 tonnes to 1,085,175 tonnes, exchange data showed, pulling back from a recent 11-month high. 

Oil prices Down in Asia Morning, Under Pressure From U.S. Production. 

Oil prices were down Wednesday morning in Asia due to growing U.S. production and a strengthening dollar.Expectations for a weekly build-up in U.S. crude inventories and continued increase in U.S. oil production have brought oil prices down. Crude stockpiles rose by 933,000 barrels last week to 421.2 million barrels. U.S production has surpassed 10 million barrels per day (bpd), an increase of more than 20% since mid- 2016. International Energy Agency Executive Director Fatih Birol said on Tuesday that the U.S. will overtake Russia as the world’s largest oil producer by 2019. In an effort to stabilize oil markets, OPEC has been curbing output by around 1.2 million bpd since January 2017, and the deal will run until the end of 2018. While the effort has helped somewhat to support oil prices, the U.S. has continued to increase its oil production, filling the gap in supply created by OPEC and thus pushing prices down. In effect, the surging production in the U.S. is hampering OPEC attempts to ease the global

oversupply. 

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Oil prices were flat Tuesday morning in Asia due to mixed cues from the Middle East - 27 Feb 2018

Clawing Back Some of Last Week’s Loss - We could be witnessing aggressive short-covering today ahead of an event-packed week headlined by U.S. inflation data and the first Congressional testimony by the new head of the Federal Reserve on Tuesday and Thursday. A steady U.S. Dollar and oversold conditions are helping to boost gold prices shortly before the regular session opening on Monday. Investors are trying to claw back some of last week’s more than 1 percent loss. In other news, hedge funds and money managers raised their net long positions in COMEX gold and copper contracts in the week to February 20, U.S. Commodity Futures Trading Commission data showed on Friday. On Friday, the Fed also said that it sees steady growth continuing and no serious risks on the horizon that might pause its planned pace of rate hikes.

Zinc prices to stay supported on low inventory - While not all downstream customers have resumed operations post-Chinese New Year, SMM believes zinc prices would stay firm due to the huge decline in LME inventory. Sources at Chinese miners and smelters were mostly bullish about zinc prices as they believe the domestic zinc concentrate output addition would be limited due to still strict environmental protection policy. Supply tightness remains as some miners have yet to come back from the Chinese New Year holiday and treatment charges (TCs) were low. Traders also expect zinc to stay firm as LME inventory continues to decline and as downstream consumption recovers gradually and leads to destocking in China.

Oil Prices Flat Amid Mixed Signals - Oil prices were flat Tuesday morning in Asia due to mixed cues from the Middle East, Asia and the U.S.Oil prices have zigzagged between mild gains and losses over the past weeks due to mixed cues. Saudi Arabia’s oil minister said on Saturday that the Kingdom hoped the Organization of the Petroleum Exporting Countries (OPEC) would ease production restraints next year after the current supply cut deal ends this year. In an effort to stabilize oil markets, OPEC has been curbing output by around 1.2 million barrels per day (bpd) since January 2017, and the pact would run until the end of 2018. While the effort has helped somewhat to support oil prices, the U.S. has continued to increase its oil production, filling the gap in supply created by OPEC and thus pushing prices down. The U.S has increased its production by more than 20% since mid-2016 to more than 10 million bpd. At this rate of production increase, the U.S. is set to overtake Russia in crude oil output by late 2018, making it the largest global supplier.

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Gold eased as the dollar climbed further from last week’s three-year low on the back of higher Treasury yields - 26 Feb 2018

Gold eased as the dollar climbed further from last week’s three-year low on the back of higher Treasury yields - Gold on MCX settled down -0.21% at 30509 as the dollar climbed further from last week’s three-year low on the back of higher Treasury yields. Volatility has jumped across financial markets this month as investors worried about the pace of U.S. rates hikes in the wake of data showing a pick-up in inflation. St Louis Fed President James Bullard tried to tamp down expectations of four rate hikes in 2018. Three increases are widely anticipated. Stocks have steadied after recent sharp losses, while the dollar has found its feet after last week falling to its lowest since the end of 2014. Rising U.S. yields have put the currency on track for its second biggest weekly gain of the year. In addition to their impact on currencies, higher yields can also weigh on gold in their own right, as they increase the opportunity cost of holding non-interest bearing bullion. Meanwhile, demand for the yellow metal in other major hubs in Asia remained dull as most markets were shut for the week-long Lunar New Year holidays. 

Copper prices fell as investors locked in profits and the dollar firmed amid uncertainty over demand in top metals consumer China - Copper on MCX settled down -1.07% at 459.7 as investors locked in profits and the dollar firmed amid uncertainty over demand in top metals consumer China. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 10.5 percent from last Friday, the exchange said. Record high stocks of copper in land-locked Arizona and Utah are a reflection of soaring transport costs in the United States and weak demand for the industrial metal produced in the Americas, copper industry sources say. Sources added that stocks in these two locations are likely to keep rising until prices are high enough to offset costs of transporting the copper. U.S. premiums are up more than 10 percent since November, but they are still not high enough to cover the costs of transporting the copper to the country's industrial heartland in the Midwest or to consumers in Asia.

Oil Prices Climb On Monday As Asia’s Oil Production Drops - Oil prices are up Monday morning in Asia, boosted by a new report from Rystad Energy forecasting oil production in East and Southeast Asia will drop by 20 percent between 2017 and 2025.Oil production in Asia is eroding sharply due to natural depletion in mature oil fields. Total oil production in East and Southeast Asia is set to decline from 13.1 million barrels of oil equivalent per day (boe/d) to 10.4 million boe/d by 2025, according to Rystad Energy. Underpinning the decline in output is the diminishing volume of new oil discoveries in East and Southeast Asia. The past decade and a half has seen fewer and fewer new sources of oil, while the limited volume of new oil discovered may not translate into production. China’s oil production will decline the least, with the giant Changqing field continuing to support stable output and likely to contribute over 1 million boe/d over the next five years.

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Global primary aluminium output grows to 5.56 million mt in Jan- 23 Feb 2018

Gold remained under pressure as investors awaited Federal Reserve policy meeting minutes for clues on the outlook for U.S. interest rates - Gold on MCX settled down -0.18% at 30476 as investors awaited Federal Reserve policy meeting minutes for clues on the outlook for U.S. interest rates. The minutes from the last U.S. Federal Reserve meeting showed policymakers confident in the need to keep raising interest rates. The more upbeat take on inflation in the minutes of the Jan. 30-31 policy meeting released on Wednesday will likely further cement expectations that new Fed chief Jerome Powell will lead his colleagues in raising interest rates next month. The “best hope” for the impact of the Trump administration’s $1.5 trillion tax overhaul on the U.S. economy is that it boosts investment and thus productivity, Minneapolis Federal Reserve Bank President Neel Kashkari said. But whether it will do so and deliver faster economic growth in the process is unclear, he said at a dinner hosted by Bloomberg News and broadcast on the regional Fed bank’s website.

Global primary aluminium output grows to 5.56 million mt in Jan - Global primary aluminium output grew to 5.56 million mt in January, compared with 5.4 million mt in December, according to data from International Aluminium Institute (IAI) released on Thursday February 22. China’s production last month rose to 2.88 million mt, from 2.71 million mt in December. Unreported output was estimated at 310,000 mt in January, in line with the level seen in December, IAI data showed.

Oil Prices Climb In Asia Morning Amid Sudden Drop In U.S. Crude Stockpiles - Oil prices were up Friday morning in Asia, boosted by an unexpected decline in U.S. crude inventories.The drop at Cushing was because prompt crude prices were higher than forward prices, discouraging storage as it makes more sense to liquidate on-hand inventories.The largest privately owned crude terminal in the U.S., the Louisiana Offshore Oil Port (LOOP), recently completed the first very large crude carrier (VLCC) crude oil loading operation. The super carriers can ship around 2 million barrels of oil. This timely development comes as demand for oil continues to surge in Asia, especially China. A drop in the U.S. currency from an eight-day peak also supported oil prices, as dollar-denominated oil is now cheaper for other countries to import. Strengthened by healthy demand growth in Asia, oil prices are slowly inching closer to the highs of the beginning of February. WTI started February at $65.80 and Brent started at $69.65.

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Gold Prices Fall As Dollar Rises Following Release Of Fed Minutes- 22 Feb 2018

Gold Prices Fall As Dollar Rises Following Release Of Fed Minutes - Gold prices were trading lower on Thursday, weighed down from fresh gains in the dollar as it traded near a one-week high against a basket of major currencies. The dollar extended its recovery and rose to an over one-week peak on Thursday, as the Federal Reserve’s latest comment solidified expectations of interest rate hike ahead after showing a more upbeat take on inflation and increasing confidence that economic growth would pick up steam. Fed policy makers would next meet on 20 March. Both the dollar and U.S. treasury yields rose after the Fed minutes. In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to interest-bearing assets such as bonds.

Copper prices recovered on expectations that labour strife at copper mines this year would reduce supplies -  Copper on MCX settled up 0.71% at 460.45 rallied on short covering in late session while in morning session prices traded in the range with volumes remain light as Chinese markets where closed on account of Spring Festival holiday. Prices got support after the update that the International Copper Study Group (ICSG) released preliminary data for November 2017. Also World mine production is estimated to have declined by 2.4% in the first eleven months of 2017, with concentrate production declining by 2% and solvent extraction-electrowinning declining by 3.5%. The decline in world mine production was mainly due to 1.6% decline in production in Chile, the worlds biggest copper mine producing country which was negatively affected by the strike at the Escondida mine and lower output from Codelco mines. Reductions in concentrate production in Argentina, Canada and Mongolia of 57%, 15.5% and 15% respectively were mainly due to lower grades in planned mining sequencing and Argentinas Alumbrera mine approaching end of life. While level like 462-464 will act as strong resistance as dollar hit a one-week high to a bouyant two-year Treasury note yield, which hit a nine-year high as traders awaited the release of the Fed minutes.

Oil Prices Down Again In Asia Morning As U.S. Dollar Continues To Recover - Oil prices are down again Thursday morning in Asia, driven by a stronger dollar which outweighed the effects of a decrease in U.S. crude oil inventories.The dollar rose beyond a one-week peak against other currencies on Wednesday, extending its recovery from three-year lows set last week as traders cut back on some of the bearish bets against the U.S. dollar. The strengthening dollar makes greenback-denominated oil imports more expensive for other countries, thus curbing demand and dragging prices down.The U.S. is still expected to continue increasing its production, as it has done by more than 20% since mid-2016 to more than 10 million barrels per day (bpd). At this rate of production increase, the U.S. is set to overtake Russia in crude oil output by late 2018, making it the largest global supplier.

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Gold prices fell as the dollar rebounded from over three-year lows hit last week- 21 Feb 2018

Gold prices fell as the dollar rebounded from over three-year lows hit last week - Gold on MCX settled down -0.68% at 30532 as the dollar remained strong on rising treasury yields, while investors awaited the minutes of the U.S. Federal Reserve’s last policy meeting for cues on the pace of interest rate hikes this year. The dollar continued its rebound from three-year lows as investors shrugged off worries about the U.S. budget deficit and focused on large U.S. government debt auctions this week. The Fed will release the minutes of its Jan. 30-31 policy meeting on Wednesday. The meeting was held during last month’s drop in equity markets and investors are interested in its response to the market gyrations as well as the rate outlook. The U.S. Treasury Department on Tuesday sold record amounts of three-month and six-month bills at the highest interest rates for these maturities at auctions in more than nine years, Treasury data showed.

Copper traded in the range largely prices remain unchanged in extremely light trading volumes as the Shanghai Futures Exchange is closed -  Copper on MCX settled down -0.02% at 457.20 traded in the range largely prices remain unchanged in extremely light trading volumes of less than 1000 lots as the Shanghai Futures Exchange is closed for the Lunar New Year. While upside was capped and sentiments remain weak as a firm dollar dictated direction in a thinly traded market, with holidays in top metals user China. The dollar steadied after pulling ahead from a three-year low against a currency basket the previous day, though it was dogged by growing concerns a ballooning fiscal deficit in the US could disrupt the economy. Copper registered falls from yesterday after reports that Indonesia had let Freeport start shipping copper concentrates from its Grasberg mine for another year. In the week ahead, investors will focus on minutes of the Fed’s latest policy meeting with hopes the central bank will give more hints 

on the pace of future rate hikes this year.

Oil dips as U.S. dollar firms, oil production is expected to rise - Oil prices fell on Wednesday, weighed down by the rebound of the U.S. dollar further away from three-year lows hit last week. An expected rise in U.S. oil production also weighed on prices, traders said.Traders said the declines were driven by a recovery in the dollar, which potentially hits fuel demand as it makes greenback-denominated oil imports more expensive for countries using other currencies. The dollar index, which measures the greenback against a basket of six major currencies, rose for a second day on Wednesday, moving further away from the three-year lows reached last week as traders shaved off some bearish bets against the U.S. currency. "The U.S. dollar continues to find firmer footing," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

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Oil Prices Zig-zag In Asia Reacting To Mixed Influences- 20 Feb 2018

Gold Prices Fall For Third Straight Session As U.S. Dollar Strengthens.  

Gold prices remained lower on Tuesday as the dollar rebounded from a three-year low, while investors await the minutes of the latest Federal Reserve meeting due tomorrow. The dollar was supported by the U.S. homebuilding data released on Friday that increased to more than a one-year high in January and that building permits soared to their highest level since 2007. A higher-than-expected consumer price growth last week was also cited as tailwind. The greenback has been weakening in recent months, as inflation concerns amid the ideas that U.S. Federal Reserve and other central banks might raise rates were cited as the main reason for the dollar's underperformance. The U.S. Treasury Secretary Steven Mnuchin suggested last month that a weaker dollar policy by the States could be good given the country’s trade deficit is reaching to a 10-year high. 

Copper dropped as a resurgent dollar dragged down prices, while the Lunar New Year holidays reduced liquidity. 

Copper on MCX settled down -0.91% at 457.30 while prices moved in the range as trading volumes were remain thin with U.S. markets were closed on Monday for Presidents' Day and also the Shanghai Futures Exchange is closed for the Lunar New Year, reopening on Thursday, Feb. 22. Also other metals were largely unchanged in extremely light trading volumes of less than 1,000 lots. The dollar steadied after pulling ahead from a three-year low against a currency basket the previous day, though it was dogged by growing concerns a ballooning fiscal deficit in the United States could disrupt the economy. Meanwhile Hedge funds and money managers cut their net long positions in COMEX copper contracts in the week to Feb. 13, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday. In the week ahead, investors will focus on minutes of the Fed’s latest policy meeting with hopes the central bank will give more hints on the pace of future rate hikes this year. Staying in the U.S., a report on existing home sales will be the highlight of the holiday-shortened week. 

Oil Prices Zig-zag In Asia Reacting To Mixed Influences.  

Oil prices fluctuated between gains and losses again Tuesday morning in Asia, following Saudi Arabia’s decision to cut oil production late last week even as the U.S. continues to increase production.Partly due to Saudi Arabia’s vow to cut oil production by 100,000 barrels per day (bpd) next month compared to the February level and to cut exports to below 7 million bpd in March, oil prices are stabilizing and inching back up from sharp drops at the beginning of the month. Further supporting prices are rising tensions in the Middle East, especially along the border of Syria and Israel where Iranian and Syrian forces are reportedly amassing with Israeli forces responding. Although neither Syria nor Israel plays much of a role in the oil market, prices tend to increase whenever there is a threat to oil anywhere in the Middle East. 

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Gold Prices Down In Asia In Holiday-Thinned Trade- 19 Feb 2018

Gold Prices Down In Asia In Holiday-Thinned Trade. 

Gold prices eased in Asia on Monday despite some support from a weaker dollar as several key regional markets including China were shut for holidays. Markets in Hong Kong, Taiwan, Vietnam, China, the US and Canada are shut on Monday. In the week ahead, investors will focus on minutes of the Fed’s latest policy meeting with hopes the central bank will give more hints on the pace of future rate hikes this year.. Expectations for a faster rate of monetary tightening outside the U.S., which would lessen the divergence between the Federal Reserve and other central banks has eroded the dollar’s relative yield attraction for investors.

Copper prices ended with gains as support seen as the dollar continued to decline.

Copper on MCX settled up 0.75% at 461.5 as support seen as the dollar continued to decline. The dollar slipped to a three-year low against a basket of currencies, headed for its biggest weekly loss in two years, as bearish factors offset support the U.S. currency could take from rising Treasury yields. The U.S. currency has been weighed down by a variety of factors this year, including concerns that Washington might pursue a weak-dollar strategy and the perceived erosion of its yield advantage as other countries start to scale back their easier monetary policy. 

Zinc prices ended with gains tracking firmness in LME prices as support seen due to depleting stocks.

Zinc on MCX settled up 0.44% at 230.75 tracking firmness in LME prices as support seen due to depleting stocks. The dollar remained under pressure weighed down by a variety of factors this year, including concerns that Washington might pursue a weak-dollar strategy and the perceived erosion of its yield advantage as other countries start to scale back their easier monetary policy. Global zinc miners and smelters failed to reach any benchmark deal on 2018 processing terms at an annual industry gathering and any agreement is likely to be delayed by a month or more as participants haggle over prospects for growing supply in the second half. 

Oil hits highest in nearly two weeks on Asian equity recovery. 

Oil prices extended gains to hit their highest level in nearly two weeks on Monday, buoyed as Asian shares joined a global recovery in equity markets and by worries over tensions in the Middle East. Prime Minister Benjamin Netanyahu said on Sunday that Israel could act against Iran itself, not just its allies in the Middle East, after border incidents in Syria brought the Middle East foes closer to direct confrontation."The upside momentum since WTI hit last week's low of $58 has been continuing," said Tetsu Emori, CEO of Emori Capital Management in Tokyo. "Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in U.S. rig count and a slight recovery in the dollar." Trading is expected to be slower than usual due market holidays in the United States as well as Greater China and India. 

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