BULLION:-
Gold prices fell on Thursday, after hitting their highest in over a week in the previous session, as fears of another round of U.S. tariffs on China and expectations of higher interest rates lifted the dollar. Spot gold was down 0.4 percent at $1,191.18 an ounce. Prices failed to hold the psychological level of $1,200, after hitting $1,201.51, their highest since Aug. 13, in the previous session. U.S. and Chinese officials met for the first time in over two months to find a way out of their deepening trade conflict, but there was no evidence the low-level discussions would halt a new round of U.S. tariffs due to go into effect on Thursday. Minutes of the Federal Reserve’s latest policy meeting suggested the U.S. central bank is on course to further raise interest rates. The Fed has raised rates twice this year and is widely expected to tighten policy again next month after leaving rates unchanged at their last meeting. Rising interest rates increase the opportunity cost of holding non-yielding gold while boosting the dollar, in which it is priced, making the yellow metal more expensive for buyers using other currencies. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.3 percent at 95.411, after falling to its lowest in nearly three weeks at 94.934 on Wednesday. Markets are now eagerly watching for the Fed’s economic symposium in Jackson Hole, Wyoming, which will begin on Friday. Investors will wait to hear any change in stance from the central bank especially after President Donald Trump’s attack on its monetary policy early this week.
METALS:-
Copper prices slipped on Wednesday as worries about demand resurfaced ahead of trade talks between the United States and China that are seen as unlikely to yield progress. Benchmark copper on the London Metal Exchange ended down 0.7 percent at $6,005 a tone, after hitting a one-week high of $6,076 on Tuesday. U.S. and Chinese officials are set to resume contentious trade talks on Wednesday under the cloud of a prediction by U.S. President Donald Trump that there would be no real progress. The discussions among mid-level officials could set a framework for further negotiations as each country prepares to hit the other with new tariffs on Thursday in a deepening dispute over China’s economic policies. China accounts for nearly half of global copper consumption estimated at 24 million tones. The United States accounts for about 8 percent. China almost quadrupled the value of fixed-asset investment projects approved in July from the previous month as Beijing looked to accelerate infrastructure spending to stabilize the cooling economy. In news, China’s central bank said it will not resort to strong stimulus to support the slowing economy, but will keep liquidity reasonably ample and offer more help to companies that are having trouble obtaining financing. On supply side, cancelled warrants - material earmarked for delivery - for copper in LME-approved warehouses - have risen above 67,000 tones, from around 25,000 tones last week. The latest number is about 25 percent of LME copper stocks.
ENERGY:-
U.S. oil prices on Thursday extended gains from the previous session on a fall in U.S. commercial crude inventories, while international crude markets were weaker due to the trade dispute between the United States and China. U.S. West Texas Intermediate (WTI) crude futures were at $67.95 per barrel, up 9 cents, or 0.1 percent, from their last settlement. U.S. commercial crude oil inventories fell by 5.8 million barrels in the week to Aug. 17 to 408.36 million barrels, the Energy Information Administration (EIA) said on Wednesday. International markets were more cautious as the ongoing trade spat between the United States and China was seen as a drag on economic growth. Brent crude oil futures were at $74.69 per barrel, down 9 cents from their last close. On the supply side, U.S. crude oil production C-OUT-T-EIA rose back to 11 million barrels per day, the EIA report said. That means the world’s three top producers, Russia, the United States and Saudi Arabia, now all churn out around 11 million bpd, meeting a third of global demand.
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