BULLION :- Gold prices fell on Monday towards the four-week lows hit last week as the dollar strengthened after U.S. politicians approved a major taxoverhaul and the market looked ahead to a meeting of the Federal Reserve later this month. The U.S. Senate approved a tax reform bill on
Saturday, moving U.S. President Donald Trump a big step
closer to his goal of cutting taxes for businesses and the rich while offering
everyday Americans a mixed bag of changes. Lower oil prices could
mean subdued price pressure, which is a negative for gold, often used as a
hedge against
inflation. The dollar was boosted by expectations that tax
cuts would boost growth, which could fuel inflation and reinforce the case for
higher U.S. interest rates when the U.S. central bank meets on Dec.
12 and Dec. 13.However, on Friday two Federal Reserve policymakers urged
caution in
raising interest rates.
ENERGY :- Oil fell more than 1 percent on Monday as
the market saw signs of continuing U.S. production increases, though prices
remained in sight of their recent two-year highs thanks to last week’s decision
by OPEC and other producers to extend output cuts. Brent crude futures fell
$1.00 a
barrel to $62.73 by 10:40 a.m. EST (1540 GMT), while U.S.
West Texas Intermediate futures were down 70 cents at $57.66. Brent hit a
two-year high of $64.65 a month ago and has since attracted record
investment by fund managers. The market is continuing to watch U.S. crude
production,
which is nearing a record high, according to data last week.
Additionally, drillers in the United States added two oil rigs in the week to
Dec. 1, bringing the total count to 749, the highest since September,
energy Services Company Baker Hughes said on Friday .The U.S. rig count, an
early
indicator of future output, has risen sharply from 477
active rigs a year ago after energy companies boosted spending plans for 2017.
U.S. producers were encouraged during 2017 to increase activity
as crude prices started recovering from a multi-year price slump after the Organization of the Petroleum Exporting Countries (OPEC) and
some non-OPEC producers, including Russia, agreed to production cuts a year
ago. Last week the producers agreed to extend those cuts of 1.8
million barrels per day (bpd) until the end of next year.
BASE METAL :- Nickel gained on Monday as the metal
mainly used in stainless steel got a boost after Chinese steel futures touched
three-month highs, but a firmer dollar capped the rise. Steel and iron ore
contracts in Shanghai surged on Monday as government-ordered steel production
cutbacks to
reduce pollution led to tighter supplies for some mill
products. The stronger prices might not last long because eventually the steel
production cutbacks during the peak Chinese smog season in the winter
would mean less need for nickel. Weighing on the wider metals complex was a rebound in the dollar after the U.S. Senate approved a tax
overhaul at the weekend. A firmer dollar makes commodities priced in the
greenback more expensive to buyers using other currencies. LME three
month copper dipped 0.3 percent to $6,815 a tonne. China’s economic growth
target for 2018 will reflect new changes in the economy as the
government puts more emphasis on higher quality development, the State Council Information Office said on Monday. LME aluminium fell 0.3
percent to $2,069 a tonne. China’s central Shanxi province has introduced new
rules curbing water use for steel, cement and aluminium
production.
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