Gold pares gains from 5-month high despite geopolitical risks.
Gold pared gains from a five-month high on Monday, losing steam as U.S. Treasury yields turned higher and the dollar came off its lows, after rising geopolitical tensions over North Korea spurred earlier safe-haven buying in bullion. North Korea on Sunday made what was believed to be a failed missile test launch, increasing geopolitical risks. Regional tensions have risen over the past weeks as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang. Will likely retain a measure of strength heading into the French elections in about one week's time, while ongoing tensions in North Korea should also keep the markets rather nervous," said INTL FCStone analyst Edward Meir. With the first round of France's presidential election on April 23, an unpredictable outcome is pushing some pollsters to calculate the most extreme runoff scenarios. Uncertainties over Trump's policy toward North Korea have been growing.
Where Will Aluminum Prices Head After Surprise Jump?
Two factors fueled the price surge. First, the government of Changji, Xinjiang, issued Notice on Halting Construction of Illegal Aluminum Capacity on its website on April 14. Second, rumor was flying that the National Development & Reform Commission (NDRC) released “2017 656” document, which is about issuing notice on “Action Program on Cracking Down on Illegal Projects in Aluminum Industry”. This sparked expectations for tightening control on the supply side. Three companies were targeted in the notice issued by Changji government: 800,000-tpy at Xinjiang East Hope Nonferrous Metals (located in Xinjiang Zhundong Economic Tech Development Zone), 800,000-tpy at Xinjiang Qiya Aluminum (located in Xinjiang Zhundong Economic Tech Development Zone), and 400,000-tpy at Xinjiang Jiarun Resources (located in Manasi Industrial Park). Rumor surrounding the NDRC document began on April 16. Rumor about capacity cut, which has been flying around for more than two months, may come true. The NDRC is likely to issue “Action Program on Cracking Down on Illegal Projects in Aluminum Industry” on its website soon.
Two factors fueled the price surge. First, the government of Changji, Xinjiang, issued Notice on Halting Construction of Illegal Aluminum Capacity on its website on April 14. Second, rumor was flying that the National Development & Reform Commission (NDRC) released “2017 656” document, which is about issuing notice on “Action Program on Cracking Down on Illegal Projects in Aluminum Industry”. This sparked expectations for tightening control on the supply side. Three companies were targeted in the notice issued by Changji government: 800,000-tpy at Xinjiang East Hope Nonferrous Metals (located in Xinjiang Zhundong Economic Tech Development Zone), 800,000-tpy at Xinjiang Qiya Aluminum (located in Xinjiang Zhundong Economic Tech Development Zone), and 400,000-tpy at Xinjiang Jiarun Resources (located in Manasi Industrial Park). Rumor surrounding the NDRC document began on April 16. Rumor about capacity cut, which has been flying around for more than two months, may come true. The NDRC is likely to issue “Action Program on Cracking Down on Illegal Projects in Aluminum Industry” on its website soon.
Oil prices mixed after U.S. production seen rising.
Crude oil prices were mixed in thin trading on Tuesday after the Easter holiday break shut many markets for as long as four days and a U.S. government report indicated rising production, which may keep a cap on prices after recent gains. U.S. shale production in May is likely to post the biggest monthly gain in more than two years, government data showed on Monday, as producers have stepped up the pace of drilling with oil prices holding above $50 a barrel. May output is expected to rise by 123,000 barrels per day to 5.19 million bpd, according to the U.S. Energy Information Administration's drilling productivity report. If that is right, May will have the biggest monthly increase since February 2015 and the highest monthly production level since November 2015.
Crude oil prices were mixed in thin trading on Tuesday after the Easter holiday break shut many markets for as long as four days and a U.S. government report indicated rising production, which may keep a cap on prices after recent gains. U.S. shale production in May is likely to post the biggest monthly gain in more than two years, government data showed on Monday, as producers have stepped up the pace of drilling with oil prices holding above $50 a barrel. May output is expected to rise by 123,000 barrels per day to 5.19 million bpd, according to the U.S. Energy Information Administration's drilling productivity report. If that is right, May will have the biggest monthly increase since February 2015 and the highest monthly production level since November 2015.
Precious Levels
CS GOLD (JUNE) OVERVIEW:
TREND : BULLISH
RESIST 2: 29650
RESIST 1: 29500
SUP 1: 29150
SUP 2: 29000
CS SILVER (MAY) OVERVIEW:
TREND : BULLISH
RESIST 2: 43000
RESIST 1: 42500
SUP1: 42000
SUP2: 41700
Base Metal Levels
CS COPPER (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2:375
RESIST 1:370
SUP1:363
SUP2:360
CS NICKEL (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2:650
RESIST 1:640
SUP1:615
SUP2:600
CS ZINC (APRIL) OVERVIEW:
TREND : SIDEWAYS
RESIST 2:172.50
RESIST 1:171.00
SUP1:166.00
SUP2:165.00
CS LEAD (APRIL) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 149.50
RESIST 1: 148.50
SUP1: 143.00
SUP2: 141.00
CS ALUMINIUM (APRIL) OVERVIEW:
TREND : BULLISH
RESIST 2: 127.00
RESIST 1: 126.00
SUP1: 124.50
SUP2: 123.50
Energy Levels
CS CRUDE OIL (APRIL) OVERVIEW:
TREND :BEARISH
RESIST 2:3480
RESIST 1:3430
SUP1:3350
SUP2:3300
CS NATURAL GAS (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2:211.00
RESIST 1:208.00
SUP1:200.00
SUP2:197.00
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