Gold remains supported after the
U.S. Federal Reserve increased interest rates and forecast at least two more
hikes for 2018 - Gold on MCX settled up 0.61% at 30449
ahead of fed meet while Comex Gold settled at their highest levels in a week
rose by 1.6 percent to settled at $1,333 per ounce as the dollar weakened
further in the wake of the Federal Reserve’s decision to raise a key short-term
interest rate. The central bank stuck to its December forecast for three rate
increases this year, but pushed up their expected rate path in 2019 and 2020.
Investors eyed Fed Chairman’s Jerome Powell’s press conference for clues on how
aggressive the central bank panel will be with rates from here. Investors
across financial markets had priced in expectations the Fed will raise its
benchmark rate by a quarter-percentage point. The Fed did raise its economic
forecasts, but Jaime said it was unclear whether the Fed really can reach that
higher long run rate, which is where the Fed would stop raising interest rates.
The dollar lost more ground as Powell briefed journalists, and he did speak
about the trade concerns in response to a question.
SHFE zinc to remain weak in
short term - SHFE
zinc is likely to stay rangebound at lows with strong upward resistance in the
short term, given high inventories and a slow recovery of consumption, SMM
expects. The 1805 contract fell below the 24,500 yuan/mt level at the end of
the day on Wednesday March 21. Overall momentum was weak as inventories were
high. Despite production cuts from maintenance works at some smelters, China’s
output of zinc is likely to rise 8.5% in the first quarter of 2018 from the
same period in 2017, given adequate supplies of ore in and beyond China.
Downstream consumption did not recover significantly as the two political
sessions and heavy air pollution limited orders in north China.
Oil
Prices Rise On U.S. Crude Inventory Draw - Oil prices rose on Thursday morning in Asia,
lifted by an unexpected draw on U.S. crude inventories.The fall in U.S. crude
inventories was due to a fall in imports by around 500,000 barrels per day
(bpd) to an average of 7.08 million bpd last week, and a rise in exports by
86,000 bpd to an average of 1.57 million bpd. Also supporting prices is the
ongoing dollar weakness which makes oil cheaper in global markets, spurring
demand. Middle East tensions between Saudi Arabia and Iran, as well as concerns
that the U.S. will reimpose sanctions on Iran, are also supporting oil markets.
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