Gold prices fell as the dollar strengthened ahead of a Fed’s meeting at which the U.S. central bank is expected to raise interest rates for the first time this year - Gold on MCX settled down -0.51% at 30263 as bond yields rose, supporting an advance in the dollar, lessening demand for the yellow metal as the FOMC meeting got underway, a day ahead of a widely expected interest rate hike. Current investor expectations are for three 0.25% rate hikes total 2018, which would leave the Fed’s benchmark rate at range of 2.00% to 2.25% by year-end. That could change on Wednesday, however, with the release of the FOMC\'s Summary of Economy Projections which will include the closely watched “dot plots,” showing where each FOMC member in the meeting thinks that interest rates are heading at the end of the year for the next few years and in the longer run.
Zinc prices dropped as pressure seen as rising inventories highlighted healthy supplies - Zinc on MCX settled down -1.45% at 210.10 in the line of expectation tracking weakness from LME benchmark zinc fell 1.8 percent to finish at $3,203 a tonne as pressure seen after LME zinc stocks have shot up by 60 percent this month, climbing by another 5,350 tonnes on Tuesday to 211,400 tonnes. Higher zinc prices have helped miners' profit margins, and this should work as an incentive to miners to speed up their pipeline of projects or restart idled operations. Traders are also watching treatment charges for zinc concentrate. Sliding treatment charges suggest less availability of concentrate, while a rising number would mean surpluses.
Copper dropped as pressure after data showed LME copper inventories grew by a further to 322,475 tonnes, bringing the gain this year to 61 percent -Copper on MCX settled down -1.22% at 441.25 as pressure after data showed LME copper inventories grew by a further to 322,475 tonnes, bringing the gain this year to 61 percent. Concern about trade wars, higher U.S. interest rates and a stronger dollar also weighed on industrial metals markets. Fears of a global trade war mounted after U.S. President Donald Trump imposed hefty import tariffs on steel and aluminium and, according to sources, the US is set to unveil new tariffs specifically targeting China by the end of this week.
Oil Prices Continue To Rise On Middle East Tension - Oil prices continued to climb on Wednesday morning in Asia amid tensions in the Middle East.Saudi Arabia’s Crown Prince Mohammed bin Salman arrived in Washington on Tuesday for a state visit, raising speculation for an agenda to ramp up pressure on Iran. Following renewed criticism of the 2015 nuclear deal, the U.S. could reimpose sanctions on Iran, a concern that has lifted oil prices.The nomination of Mike Pompeo as new U.S. Secretary of State also raises the likelihood of oil trade disruptions, given he fiercely opposed the 2015 pact as a member of Congress.
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