GOLD:
On Friday the Fed’s Janet Yellen will deliver a speech at the annual Jackson Hole Symposium. For investors, Jackson Hole is an ideal venue for the Fed boss to finally shed light on the central bank’s outlook. The Federal Reserve’s next policy meeting is scheduled for September 20-21, and will be accompanied by a revised summary of economic projections.
COPPER:
LME copper should fluctuate between USD 4,625-4,665/mt on Friday and SHFE 1610 copper will range between RMB 36,100-36,600/mt. Spot prices are expected to trade at premium of RMB 0-50/mt.
US Fed Chairwoman will make a speech at the annual gathering of central banks in Jackson Hall today, which will give clues as to future policy path. If her speech is not as hawkish as expected, base metals will see big volatility.
Copper prices fell to their lowest level in two months on the London Metal Exchange Wednesday. Copper started the year bullish, but ever since prices have struggled near $5,000 per metric ton as investors seem unwilling to chase prices higher.
Weaker Chinese imports over the past few months and the bearish calls of some major banks have contributed to the recent price fall. Unlike other base metals, sentiment on copper is still sort of bearish, making this metal the worst performer among its peers this year.
Chinese Imports Lose Momentum
China isn’t self-sufficient when it comes to its copper needs and is the largest importer of the red metal. Rising Chinese imports signals increasing demand for the metal. In metals like zinc and nickel, we’ve witnessed a surge in Chinese imports this year, adding fuel to their bull market.
ALUMINIUM:
US Fed Chairwoman’s speech at the meeting in Jackson Hall will come under the spotlight today.
CRUDE OIL:
The world’s biggest producers are fighting for market share as prices are still at half the level of two years ago. Saudi Arabia pumped 10.67mn bpd on average in July, while Russia’s output was 11.01mn bpd, according to the Organization of Petroleum Exporting Countries.
China bought more oil from Russia than from Saudi Arabia from March through May, according to the customs data. For all of last year, Russia’s share was 12.6% against Saudi Arabia’s 15.1%.
Iran says it still hasn’t decided whether it will attend informal OPEC talks in Algiers next month, two weeks after the group announced plans to meet.
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