Gold Dips In Asia As Investors Grow Cautious Ahead Of Fed Views - Gold prices dipped in Asia as markets grow cautious ahead of Wednesday's Fed policy statements with the details on the pace of unwinding its balance sheet awaited. Overnight, gold prices fell on Monday as fading tensions on the Korean Peninsula suppressed safe-haven demand while a sharp uptick in the dollar curbed sentiment on the precious metal ahead of the Federal Reserve’s two-day meeting slated for Tuesday. Fresh on the heels of a two-week losing streak, gold prices started the week on the back foot as investors appeared to unwind some of their long positions in the precious metal following strong gains in both the greenback and treasury yields. Treasury yields rose sharply, pushing the dollar higher, amid expectations the Federal Reserve will announce that it will begin unwinding its $4.5tn bond portfolio and reaffirm its outlook that an additional rate hike remains appropriate this year, when it concludes its two-day meeting policy meeting on Wednesday.“What is more, bond yields in the U.S. have increased significantly of late, which makes gold less attractive as an alternative investment,” Commerzbank (DE:DE:CBKG) says. “Presumably this is also why Friday saw the second consecutive daily outflow from gold ETFs [exchange-traded funds].”Meanwhile, geopolitical uncertainty eased, reducing demand for safe-haven gold as investors downplayed U.S-North Korea tensions and piled into riskier assets such as equities. Meanwhile, geopolitical uncertainty eased, reducing demand for safe-haven gold as investors downplayed U.S-North Korea tensions and piled into riskier assets such as equities. “Investors have been programmed to more or less ignore stuff with Korea. The last two or three times this kind of thing occurred we went down a little, only to turn back higher. We’ve learned to buy on the dips,” said Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Company.
Crude Drops In Asia As API Estimates Ahead - Crude oil prices fell in Asia on Tuesday ahead of industry estimates by the American Petroleum Institute (API) of refined product and crude stocks in the U.S.Overnight, oil prices settled higher on Monday as investors shrugged off expectations that U.S. crude stockpiles are set to show a build for the third week in a row, following the aftermath of Hurricanes Harvey and Irma. Despite U.S. refineries reporting a much better recovery from the recent hurricanes, investors braced for an uptick in crude supplies as the U.S. ramps up imports at reopened ports to make up for the shortfall in domestic production following the aftermath of storm Harvey.“It seems that at least part of the recent rally over the last few weeks has been due to stronger demand, all the major agencies revised up their forecasts for demand for this year,” said Tom Pugh, commodities economist at Capital Economics.
Teck Resources Ups Zinc Output Target at Red Dog Mine - Foreign media reported Teck Resources Ltd. has raised its output target at the Red Dog mine. NBS: China Zinc Output Falls Noticeably in August. Zinc output is expected to be 525,000-550,000 tonnes this year, compared to previous 475,000-500,000 tonnes target.
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