Gold (futures on Comex) found buyers in Asia once again near the 1227 level, now heading back towards the two-week tops of 1229.70 reached a day before. The yellow metal remains on the front foot so far this Friday, as the US dollar extends its softness across the board into a third straight session, as markets remain wary over the Fed’s rate hike outlook amid mounting concerns about a potential global slowdown.
Rising longs buoyed prices of LME copper and the SHFE contracts on a softened US dollar. LME copper rose above the five-day moving average and closed at the highest overnight at $6,267/mt. The SHFE 1901 contract ended three consecutive trading days of decline as it closed at 49,660 yuan/mt after rising to a high of 49,680 yuan/mt. We expect it to trade at 49,400-49,800 yuan/mt today with LME copper trading at $6,220-6,270/mt
Oil prices renewed their fall on Friday, pressured by concerns that producers are churning out more oil than the world needs amid a bleak economic outlook. The divergence between U.S. and international crude comes as surging North American supply is clogging the system and depressing prices there, while global markets are somewhat tighter – in part because of reduced exports from Iran due to newly imposed U.S. sanctions.
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