Gold prices turned lower on Wednesday, as investors locked in profits fron the precious metal’s rally to a 10-month peak in the previous session
Crude oil – Crude oil futures dipped lower on Tuesday and continue to trade lower on Wednesday morning as investors are anxious over a drop in demand for U.S. oil after Hurricane Harvey knocked down several refineries in Texas. 3 million bpd of U.S. refineries have been shut down approximately and more shutdowns are expected. According to analysts – the impact of lower crude demand at refineries would balance the fall in crude oil production.
Gold prices turn lower as geopolitical tensions ease – Gold prices turned lower on Wednesday, as investors locked in profits fron the precious metal’s rally to a 10-month peak in the previous session and as geopolitical tensions between the U.S. and North Korea seemed to subside. Safe-haven demand initially strengthened on Tuesday after North Korea fired a missile that flew over northern Japan, in the latest act of provocation by Pyongyang. Following the missile test, the U.S., Japan and South Korea asked for a United Nations Security Council meeting. But market sentiment improved as U.S. President Donald Trump’s reaction to the North Korean aggression was seen as more moderate than in the past. The U.S. President did warn that “all options are on the table” however. Lower geopolitical tensions also led to a slight rebound in the dollar on Wednesday, as investors turned to upcoming reports on U.S. nonfarm employment and second-quarter growth. Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.
Growing Copper Supply in Guangdong Reverse Premiums into Discounts, SMM Reports – Growing copper supply in Guangdong reversed local spot premiums into discounts. LME Copper Stocks Record Biggest Fall in Over Decade. As of August 30, copper stocks in Guangdong totaled 28,700 tonnes, up some 10,000 tonnes from August 25. Copper Stocks Grow in Shanghai Bonded Zone, SMM Says. One smelter resumed shipments. Moreover, one large copper processor entered maintenance, hurting demand. These pushed stocks up, SMM explained.
Natural gas – Natural gas prices plunged on Monday in sympathy with a steep sell-off in WTI crude oil. However, value seekers bought the weakness, driving the market higher into the close. The price action strongly suggests that buyers have established value and support at $2.886 to $2.880. Additionally, the price action also suggests that natural gas may be working on another set of fundamentals than crude oil in regards to the hurricane damage. October Natural Gas futures settled at $2.961, up $0.037 or 1.27% after reaching an intraday low at $2.880.
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