Copper rose on Thursday as bargain hunters took advantage of recent losses, although downward pressure exerted on higher levels because of weaker demand from China.
BULLION :- Gold slid to its lowest in four months on Thursday as a bounce in the dollar sparked by optimism over U.S. tax reform plans helped break the metal out of its recent narrow trading range. Prices had been hemmed between $1,265 and $1,300 an ounce since mid-October as a series of record highs in stock markets detracted investment interest from bullion, and as traders awaited an expected increase to U.S. interest rates this month. Gold broke out of that range this week, extending losses after slipping below its 200-day moving average at $1,267. Spot gold was down 0.8 percent at $1,254.40, off an earlier four-month low of $1,252.06. U.S. gold futures for December delivery were down $9.90 at $1,256.20. The dollar touched a two-week high on Thursday on optimism the United States would push through tax reforms, while global equities rebounded after two straight days of losses. U.S. Senate Republicans agreed on Wednesday to talks with the House of Representatives on sweeping tax legislation, raising hopes that lawmakers could agree on a final bill ahead of a Dec. 22 deadline. Gold is now awaiting further direction from U.S.non-farm payrolls data this week, a key barometer of the U.S. economy. Next week the Federal Reserve is also expected to announce another rise
in U.S. interest rates and to offer guidance on the pace of further increases.
ENERGY :- Oil prices climbed more than 1 percent on Thursday due to a threatened strike in Nigeria and as traders cover shorts after sharp losses the previous day brought on by an unexpectedly large rise in U.S. stocks of refined fuels. Short covering in the market, together with the threat of a strike by Nigeria’s key oil union, has provided some support to oil prices in today’s session. One of Nigeria’s main oil unions threatened to go on strike from Dec. 18 over what it said was a “mass sacking of workers.” The country is Africa’s top oil exporter. Data from the Energy Information Administration (EIA) on Wednesday showed that U.S. crude oil inventories fell by 5.6 million barrels in the week to Dec. 1, to 448.1 million barrels,putting stocks below seasonal levels in 2015 and 2016. But gasoline stocks rose by 6.8 million barrels, well above the 1.7 million-barrel gain analyst had expected, and distillate stocks, which include diesel and heating oil, rose 1.7 million barrels. But troublingly for oil bulls, U.S. oil production rose by 25,000 barrels per day (bpd) to 9.71 million bpd in the week to Dec. 1, the highest since monthly figures showing the United States
produced more than 10 million bpd in the early 1970s.
BASE METAL :- Copper rose on Thursday as bargain hunters took advantage of recent losses, although downward pressure exerted on higher levels because of weaker demand from China. Chinese copper demand from its huge construction sector alone is greater than total copper demand from either Europe or the United States. Benchmark copper on the London Metal Exchange closed 0.2 percent higher at $6,564 a tonne. Copper, which has gained 19 percent this year, fell on Tuesday to $6,507.50, its weakest since Oct. 10. News that Zambia lifted a ban on night driving for truckers was welcomed, but Menke said bottlenecks were still feared after the Tanzania-Zambia Railway Authority (TAZARA) suspended all train services following a strike, including the transportation of copper. In other metals, LME nickel climbed 2.2 percent to close at$11,045 a tonne, rebounding after touching a new two-month trough of $10,740. Providing some support was news that Brazilian miner Vale SA dialled back its nickel output forecasts for the next five years on Wednesday. On the contrary, LME three-month aluminium shed 0.4 percent to finish at $2,010 a tonne after touching a four-month low of $1,998.50. ome Japanese aluminium buyers have agreed to pay some global producers a premium of $103 a tonne for shipments in the first quarter of next year, higher than the $94-$95 premium in the current quarter.
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