Gold Prices Gain In Asia With Nonfarm Payrolls On Tap Ahead - Gold prices gained in Asia on Friday with the market awaiting nonfarm payroll figures for further clues on the likely path of Fed rate hikes this year. Overnight, gold prices traded close to session highs supported by ongoing dollar weakness despite the Federal Reserve suggesting that the inflation could be set to move higher this year. The Federal Reserve kept interest rates unchanged on Wednesday but stoked expectations for a more aggressive pace on monetary policy tightening after adopting a slightly more hawkish outlook on inflation. "Inflation on a 12‑month basis is expected to move up this year and to stabilize around the Committee's 2 percent objective over the medium term." RBC said that the shift in the Fed’s language signalled a “clear upgrade” on inflation as the central bank ditched its dovish commentary on inflation.
Zinc prices rose as a harsh winter in the United States and China hits
supplies - Zinc on MCX settled up 1.5% at
229.35 gained on fresh buying as support seen after LME Zinc rallied to closed
up 0.5 percent at $3557, but was still some way off a 10-1/2 year peak hit on
Monday as support seen after the update that the harsh winter in the United
States and China hits supplies and as Beijing continues to restrict output on
environmental grounds. While Zinc prices on MCX rallied more as support seen
after the Indian rupee plunged heavily on falling as much as 44 paise against
the US dollar as Arun Jaitley tabled Union Budget 2018 which was the last
full-year Budget by Modi-led NDA government before the 2019 Lok Sabha
Elections.
Copper
prices gained as investors took up new long positions as Beijing continues to
restrict output on environmental grounds - Copper on MCX settled up 0.84% at 454.70 gained
on MCX as support seen after the Indian rupee plunged heavily on falling as
much as 44 paise against the US dollar as Arun Jaitley tabled Union Budget 2018
which was the last full-year Budget by Modi-led NDA government before the 2019
Lok Sabha Elections. The domestic currency slumped 44 paise at 64.03 apiece US
dollar at the interbank foreign exchange market on Thursday. While LME Copper
ended flat at $7119 with a bout of poor Chinese data offsetting strong US
manufacturing figures. Also the powerful union at BHP's Escondida copper mine,
the world's largest, on Wednesday cast doubt on chances of starting talks on a
new labour agreement with the company before formal negotiations scheduled for
June.
U.S. oil prices extend gains on compliance with output cuts - Oil rose for a third day on Friday after a
survey showed strong compliance with output cuts by OPEC and others including
Russia, offsetting concerns about surging U.S. production.Production by the
Organization of the Petroleum Exporting Countries (OPEC) rose in January from
an eight-month low as higher output from Nigeria and Saudi Arabia offset a
further decline in Venezuela and strong compliance with a supply reduction
pact, a Reuters survey showed."It underscores the commitment of the
cartel, and their Russian partners, to keep a floor under the oil price,"
said Greg McKenna, chief market strategist at futures brokerage AxiTrader. That
is drawing investors' focus away from the rise in U.S. production.
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