BULLION – Bullion counter may remain on sideways to negative path. Gold prices were steady on Wednesday after recovering to above the key $1,500 an ounce level in the previous session, with investors waiting for the minutes of the Federal Reserves July meeting for possible clues on further U.S. interest rate cuts. Investors are now focused on the minutes of the Feds most recent meeting, which are due on Wednesday. They are also waiting for the central banks Jackson Hole seminar later this week and a Group of Seven summit this weekend for clues on what additional steps policymakers may take to boost economic growth. SPDR Gold Trust, the worlds largest gold-backed exchange-traded fund, said its holdings rose 0.21% to 845.17 tonnes on Tuesday.
ENERGY– Crude oil may trade with positive path. Prices for Brent oil rose above $60 a barrel for the first time in over a week on Wednesday amid data that showed a larger-than-expected drawdown in U.S. crude inventories, but ongoing worries about a global economic recession capped gains. U.S. crude oil stocks fell by 3.5 million barrels to 439.8 million in the week to Aug. 16, data from industry group the American Petroleum Institute (API) showed on Tuesday. Analysts polled by Reuters had expected a decrease of 1.9 million barrels. Global oil consumption is falling at the fastest rate for almost five years as manufacturing activity and trade flows slip around the world and vehicle production tumbles. Tensions in the Middle East remained in focus as U.S. Secretary of State Mike Pompeo said on Tuesday that the country would take every action it can to prevent an Iranian tanker sailing in the Mediterranean from delivering oil to Syria in contravention of U.S. sanctions. U.S. natural gas futures rose for a second straight session on Tuesday as gas demand rose amid above-normal temperatures, but a surge in production to all-time highs and forecasts for moderating weather limited gains.
BASE METAL – Base metals may trade on mixed path. President Donald Trump on Tuesday said he had to confront China over trade even if it caused short-term harm to the U.S. economy because Beijing had been cheating Washington for decades. London copper prices inched up in early trade on Wednesday after a more than 1% drop in the previous session, as the dollar fell from a three-week peak and investors awaited the minutes of the Federal Reserve’s July policy meeting. The global world refined copper market showed a 62,000 tonnes deficit in May, compared with a 124,000 tonnes deficit in April, the International Copper Study Group said in its latest monthly bulletin. Xinfa Group, one of China’s top aluminium producers, has shut down an aluminium production line after an explosion at a plant in the northwestern Chinese region of Xinjiang, according to a company source.
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