Gold prices cross above $1,300 at start of busy week – Gold prices crossed above the key $1,300-level on Monday
Oil markets roiled as Hurricane Harvey hits U.S. petroleum industry – Oil markets were roiled on Monday after Hurricane Harvey wreaked havoc along the U.S. Gulf coast over the weekend, crippling Houston and its port, and knocking out numerous refineries as well as some crude production. Gasoline prices hit two-year highs as massive floods caused by the storm forced refineries across the U.S. Gulf Coast to shut down. In crude markets, U.S. crude futures fell as the U.S. refinery shutdowns could reduce demand for American crude, while Brent futures (LCOc1) also eased, giving up early gains due to pipeline blockades in Libya over the weekend. Harvey is the most powerful hurricane to hit Texas in more than 50 years, killing at least two people, causing large-scale flooding, and forcing the closure of Houston port as well as several refineries. The U.S. National Hurricane Center (NHC) said on Monday that Harvey was moving away from the coast but was expected to linger close to the shore through Tuesday, and that floods would spread from Texas eastward to Louisiana. Texas is home to 5.6 million barrels of refining capacity per day, and Louisiana has 3.3 million barrels. Over 2 million barrels per day (bpd) of refining capacity were estimated to be offline as a result of the storm.
Gold prices cross above $1,300 at start of busy week – Gold prices crossed above the key $1,300-level on Monday, as the U.S. dollar sank to its lowest in more than a year after Federal Reserve Chair Janet Yellen’s speech at Jackson Hole made no reference to U.S. monetary policy. Yellen’s speech at the annual meeting of central bankers in Jackson Hole, Wyoming on Friday focused on financial stability while giving no hint on monetary policy, leaving the prospect of more interest rate hikes up in the air. She said the reforms put in place after the 2007-2009 financial crisis have strengthened the financial system, without impeding economic growth. The dollar index was down 0.1% against a basket of six major currencies at 92.38, adding to Friday’s losses. It fell to its lowest since early May 2016 at 92.30 earlier. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Gold prices finished last week up 0.5%. The yellow metal has been well-supported in recent weeks as U.S. political developments kept investors on edge and supported safe-haven demand. Global financial markets will focus on this week’s U.S. employment report to gauge how it will impact the Federal Reserve’s view on monetary policy through the end of the year. In addition, market players will keep an eye out on a revised reading of second-quarter U.S. growth for further hints on the strength of the world’s largest economy. This week’s calendar also features U.S. data on personal income and spending, which includes the personal consumption expenditures inflation data, the Fed’s preferred metric for inflation. Reports on ISM manufacturing sector activity, CB consumer confidence, ADP private sector payrolls and monthly auto sales figures are also on the agenda.Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September.
Zinc Spot Premiums Expand in Shanghai, Imported Zinc More Popular- Downstream buyers and traders preferred imported goods as imported zinc was sufficient in Shanghai which held price advantage, SMM reports. Gamsberg Zinc Mine Project to Recover Output at Vedanta Subsidiary. Spot premiums of domestic #0 zinc expanded 30-50 yuan per tonne to 280-350 yuan per tonne over SHFE September zinc, SMM said. Zinc Premiums to Fall in Shanghai on More Arriving Shipments from both Home and Abroad, SMM Says.
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