Gold bounces off lows hit after Macron wins French election.
Gold prices bounced off a seven-week low on Monday as safe haven demand ebbed away following pro-EU candidate Emmanuel Macron’s victory in the French presidential election. The removal of the political risk associated with Macron’s rival Marine Le Pen – who had vowed to take France out of the euro – leaves investors refocusing on the pace of monetary policy normalization in Europe and the United States. The European Central Bank is expected to have more room to tighten policy as the euro zone’s economic recovery gathers pace. In the United States, data out on Friday showed the unemployment rate dropped to near a 10-year low, which is seen as reinforcing the case for a U.S. interest rate hike next month rates dent demand for non-interest bearing gold. At the same time, a stronger dollar makes dollar-priced gold costlier for non-U.S. investors.
China Refined Zinc Output Decreases in April, SMM Reports.
China’s refined zinc production fell to 413,000 tonnes in April 2017, a drop of 3.95% month-onmonth and 5.92% year-on-year, SMM data show. Total refined zinc output in the first four months of the year was 1.711 million tonnes, a fall of 1.84% on a yearly basis. Lower zinc prices and domestic zinc concentrate TCs ate into profit at domestic zinc smelters. Besides, enhanced environmental protection in some regions affected mine production, tightening raw material supply for zinc smelters. An increasing number of smelters chose to conduct maintenance, SMM understands. China’s refined zinc production may slide further to 406,000 tonnes in May. Ongoing environmental protection inspections in Huayuan County, Hunan Province and Sichuan Province, combined with raw material supply tightness, will force smelters to undertake maintenance, SMM said.
Oil prices edge up in anticipation of extended crude output cut.
Oil prices edged up on Tuesday, driven by anticipation that an OPEC-led pledge to cut production would be extended beyond the first half of the year and into 2018, although overall high supply still weighed on markets. The higher prices were a result of top exporter and de facto OPEC leader Saudi Arabia saying on Monday it would “do whatever it takes” to rebalance a market that has been dogged by oversupply for over two years, resulting in crude prices below $50 per barrel. A cornerstone of the Saudi promise to rebalance the market would be to extend, potentially into 2018, a pledge led by the OPEC and other producers including Russia to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year words from Saudi Arabia about extending the production cut deal, possibly into 2018, supported prices.
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