Gold on Wednesday held near one-week lows touched in the previous session, as global trade tensions and emerging market concerns boosted demand for the U.S dollar, undermining the metal’s safe haven status. Emerging markets stocks and currencies were under added pressure on concerns about inflation in Turkey and after data showed South Africa had slumped into recession in the second quarter. U.S. President Donald Trump could follow through on plans to impose levies on $200 billion more of Chinese imports after a public comment period on his proposed new tariffs on Chinese goods is set to end on Thursday.
Shanghai copper hit its lowest in more than a year overnight and was down for a fifth straight day in early trade on Wednesday, tracking a 2.6 percent drop in London copper overnight as U.S.-China trade tensions continue to weigh on metals prices. Global miner BHP said on Wednesday it would spend $35.2 million to buy a 6.1 percent stake in SolGold PLC, the majority owner and operator of the promising Cascabel copper-gold project in Ecuador. A company owned by Russian billionaire Alisher Usmanov’s holding company said on Tuesday it had started construction of a massive mining and metallurgical plant at the Udokan copper deposit in a remote region in eastern Siberia.
Oil prices fell on Wednesday, partly reversing a strong jump from the previous day, as the impact of a tropical storm on U.S. Gulf coast production was not as strong as initially expected. Prices jumped the previous day as dozens of U.S. oil and gas platforms in the Gulf of Mexico were shut in anticipation of tropical storm Gordon hitting the region. But the storm was shifting eastward late on Tuesday, reducing its threat to producers on the western side of the Gulf and most Gulf Coast refineries.
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