Gold prices were little changed near a three-and-a-half-month high during European morning hours on Monday, as market players looked ahead to U.S. President Donald Trump's address to Congress on Tuesday for further details on his promises of tax reform, deregulation and infrastructure spending. Investors also looked ahead to a speech by Federal Reserve Chair Janet Yellen on Friday for further hints on the timing of the next U.S. rate hike. President Donald Trump will make his first major address to Congress on Tuesday. Investors are hopeful he will shed light on his economic agenda, most notably tax reform.
Beyond tax reform, investors will be eager to learn more about Trump's plans for repealing the Affordable Care Act, reducing regulations on businesses and increasing infrastructure spending. Analysts warned that market sentiment could take a hit if Trump's plans look slow to execute or are overly vague. President Trump has been credited with being a major catalyst behind the stock market's impressive rally in recent weeks, although he has yet to outline his economic policies in detail.
Chinese Aluminum Prices Face Threats Even as They Climb Higher.
A recent article from news service Reuters raises concerns over the continued strength of the aluminum price. Benchmark Your Aluminum Price by Grade, Shape and Alloy. Global aluminum prices have risen over the last six months, led by a strong rebound in the Chinese market. From a low of just over 9,000 yuan (electric town) in November 2015, the Shanghai price has risen steadily to above 14,000 yuan today as this graph from Thompson Reuters illustrates.
Spurred by healthy demand and the rising price, smelters have responded with gusto. As primary metal production in the rest of the world has fallen by an annualized 182,500 metric tons per year, output in China has surged. Although monthly figures are subject to considerable swings, Reuters reports January hitting a record of 2.95 million mt according to figures from China’s non-ferrous metals industry association. That is equivalent to an annualized rate of 34.7 mt or 56% of global output, a staggering 19% year-on-year growth.
U.S. oil ticks up for 2nd day on record OPEC output cut compliance.
U.S. crude oil edged higher for a second day on Tuesday, underpinned by high compliance with OPEC's production cuts even as the market remains anchored by rising U.S. production. The Organization of the Petroleum Exporting Countries (OPEC) has so far surprised the market by showing record compliance with oiloutput curbs, and could improve in coming months as the biggest laggards - the United Arab Emirates and Iraq - pledge to catch up quickly with their targets. The prospect of OPEC extending the current cuts even longer, we would expect to see prices continue to push higher from here," ANZ said in a note.
Under the deal, OPEC agreed to curb output by about 1.2 million barrels per day (bpd) from Jan. 1, the first cut in eight years. Russia and 10 other non-OPEC producers agreed to cut around half as much. A Reuter’s survey of OPEC production later this week will show compliance for February. Passive investment funds are poised to shift an estimated $2 billion from far-term to near-term crude futures over the next week, anticipating an energy market rally as the OPEC output cut slashes supply. The same time rising U.S. oil production continues to limit gains.
Precious Levels
CS GOLD (APRIL) OVERVIEW:
TREND : BULLISH
RESIST 2: 29900
RESIST 1: 29800
SUP 1: 29450
SUP 2: 29300
CS SILVER (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2: 44000
RESIST 1:43700
SUP1: 43000
SUP2: 42850
Base Metal Levels
CS COPPER (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2:406
RESIST 1:402
SUP1:394
SUP2:390
CS NICKEL (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2:755
RESIST 1:745
SUP1:729
SUP2:715
CS ZINC (MARCH) OVERVIEW:
TREND : BEARISH
RESIST 2:191.00
RESIST 1:189.50
SUP1:186.50
SUP2:185.00
CS LEAD (MARCH) OVERVIEW:
TREND : BEARISH
RESIST 2: 155.00
RESIST 1: 154.00
SUP1: 149.50
SUP2: 148.50
CS ALUMINIUM (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2: 129.00
RESIST 1: 128.00
SUP1: 125.00
SUP2: 124.00
Energy Levels
CS CRUDE OIL (MARCH) OVERVIEW:
TREND : SIDEWAYS
RESIST 2:3700
RESIST 1:3670
SUP1:3600
SUP2:3560
CS NATURAL GAS (MARCH) OVERVIEW:
TREND : BEARISH
RESIST 2:189.00
RESIST 1:185.00
SUP1:177.00
SUP2:174.00
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