Decline in Base Metal Prices Amid Rising Uncertainty Over Chinese Economic Measures

Decline in Base Metal Prices Amid Rising Uncertainty Over Chinese Economic Measures

Here are the top metals news from Evest Online Trading Platform:

 

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Metal Prices


Decline in Metal Prices Amid Questions Over the Effectiveness of China’s Stimulus Package
Base metal prices, including copper and iron ore, have seen a notable decline as uncertainty grows regarding the potential impact of China’s unexpected economic stimulus package in achieving a strong recovery. The announcement, aimed at supporting China’s sluggish economy, has raised many questions among investors about the effectiveness of these measures, especially in the crucial real estate sector.

Copper fell below $9,800 per ton after two days of gains, driven by the Chinese stimulus package announcement. However, with a lack of further details regarding the measures, concerns have grown about whether these steps can alleviate deflationary pressures and stimulate demand for essential materials in sectors like infrastructure and real estate, both critical for metal consumption.

 

 

 

 

 

 

Political Risks


Political Risks Add to Economic Uncertainty
Citi Group mentioned in a note that there is caution regarding the short-term outlook for copper and other base metals, as it remains unclear whether these measures mark the beginning of a more comprehensive stimulus strategy or if they will have limited impact. The note also added that political risks in the United States are compounding the uncertainty, including concerns over a potential slowdown in the U.S. labor market and heightened tensions ahead of the presidential elections.

 

 

 

 

 

 

 

Market Movements Summary


Decline in Iron and Zinc Prices, Stability in Aluminum
Three-month copper futures fell 0.4% to $9,775.50 per ton on the London Metal Exchange at 11:29 a.m. Singapore time, after reaching their highest level since July. Citi Group has set a target price of $9,500 per ton for copper over the next three months. Zinc, nickel, and lead prices also saw declines, while aluminum prices remained stable.

As for iron ore, futures dropped 0.5% to $96.05 per ton in Singapore, after a significant rise of nearly 8% over Tuesday and Wednesday.

 

 

 

Decline in Base Metal Prices Amid Rising Uncertainty Over Chinese Economic Measures

 

The price of gold rises amid anticipation of the US jobs report

The price of gold rises amid anticipation of the US jobs report: Gold prices rose in the trading session on Wednesday,
amid investors’ anticipation of the release of economic data, especially the jobs report,
in an attempt to predict the Federal Reserve’s move regarding the monetary policy it will follow.
Still, the rise in US bond yields made it difficult for gold to continue rising.

 

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Gold price mover

Economic reports and data

Metal prices

 

Gold price mover

Kyle, a senior financial market analyst at Capital.com,
believes that reducing expectations regarding interest rate cuts is the biggest driver of gold’s price,
which will remain so for a few days.

The report of the last Federal Reserve meeting, which was held on December 12 and 13,
indicated that bank officials are convinced of the decline in inflation.
Still, they expressed great doubt regarding interest rates and their reduction.

The dollar index fell, maintaining the rate it reached over 3 weeks in the last session,
while 10-year Treasury bond yields rose and reached 3.9330%.

Economic reports and data

Investors are awaiting the release of the weekly unemployment claims data,
which is expected to be released today, in addition to the non-farm payrolls report, which will be released tomorrow,
Friday, to obtain a clearer picture of the scope available to the US Central Bank to reduce interest rates.

 

Metal prices

The price of gold reached 2043.72 after it rose 0.1% in spot trading,
while the price of gold futures reached $2051 per ounce after it rose 0.4%.

The price of silver stabilized at $22.97 per ounce,
while platinum rose by 0.5% and reached $966.59,
The palladium reached $1066.93 per ounce after rising by 0.1%.

 

The price of gold rises amid anticipation of the US jobs report