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. Gold prices made a bold start to week shrugging off signs of progress on tax reform following a report from Reuters, citing aides, that Republican lawmakers could vote on tax legislation as soon as Tuesday, boosting the chances of the tax bill passes this week. “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. Now in the week ahead, the final reading of third-quarter U.S. growth
will be the main focus for global financial markets, as investors begin to wind
down trading activity before the Christmas and New Year holidays.
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.
Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.
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