Gold prices were steady early Wednesday as the dollar edged up, while palladium dipped from record highs touched in the previous session but was in close proximity to the bullion. Spot gold was at $1,236.85 per ounce at 0121 GMT. In the previous session, prices touched a peak of $1,241.86, their highest since Oct. 26. US gold futures were down 0.4 per cent at $1,241.4 per ounce. One of the most influential Federal Reserve policymakers said on Tuesday he expects further interest rate hikes continuing next year since the US economy is “in really good shape,” reinforcing the Fed’s upbeat tone in the face of growing doubts in financial markets.
London copper fell to close at $6,168.5/mt overnight as shorts built their bets on the recovery of the US dollar. The SHFE 1902 contract slid to close at 49,230 yuan/mt after a lower open overnight. Copper prices are likely to remain range bound at lows today with a trading range of $6,150-6,200/mt for LME copper and of 49,200-49,700 yuan/mt for the SHFE 1902 contract. Spot premiums are seen at 110-260 yuan/mt.
With less than 48 hours to go before a critical OPEC gathering, Saudi Arabia and Russia are set to meet in Vienna for a make-or-break preparatory meeting on Wednesday that’s going to set the direction for the oil market. The stakes are high after crude prices suffered their largest monthly drop since the global financial crisis in November, and politicians from U.S. President Donald Trump to French President Emmanuel Macron have called on OPEC to keep energy prices in check. Saudi Energy Minister Khalid Al-Falih on Tuesday cautioned an output deal wasn’t done — at least not yet.
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