Gold prices dipped early on Thursday as the dollar steadied after declining from a near one-month high in the previous session, while palladium rose to a record high, trading at a premium to the bullion. Asian shares and the pound moved higher as investors breathed a sigh of relief after British Prime Minister Theresa May survived a no-confidence vote, and as China appeared to be taking more steps to meet U.S. demand to open its markets. China appears to be easing its high-tech industrial development push, dubbed “Made in China 2025,” which has long irked the United States, amid talks between the two countries to reduce trade tensions, according to new guidance to local governments.
London copper regained some losses after it fell to the day’s lows of $6,132/mt on Wednesday, ending at $6,150/mt. After opening lower, the SHFE 1902 contract hovered at 49,030-49,130 yuan/mt overnight and closed at 49,120 yuan/mt. A lack of inflation in November, UK Prime Minister Theresa May’s survival of a no-confidence vote and new US-China trade hopes weighed on the US dollar index overnight and supported copper prices.
Oil prices rose on Thursday, buoyed by a drawdown in U.S. crude inventories and signs that China is taking more concrete steps to put a trade war truce with Washington into action. Crude oil prices have also been supported by OPEC-led supply curbs announced last week, although gains were capped after the producer group lowered its 2019 demand forecast. “Crude oil prices rose, helped by the easing trade tension, as well as a fall in inventories,” ANZ bank said on Thursday.
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