CURRENT MCX MARKET NEWS UPDATES
Gold Prices Fall On Steady Dollar -
Gold prices fell on Tuesday as the dollar held steady ahead of PPI and CPI data on Wednesday. The U.S. dollar index that tracks the greenback against a basket of six major currencies rose 0.05% to 92.66. The greenback climbed to its highest level this year at 92.82 overnight. Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal. Events to look out this week for the greenback’s movement include U.S. President Trump’s decision on whether to withdraw from the Iran deal later in the day. U.S. withdrawal would mean unclear geopolitical developments in the Middle East that can weigh down the dollar. The U.S. is also due to release its PPI and CPI data on Wednesday and Thursday respectively.
Analysis: SHFE zinc gains as risk-taking sentiment improves after US-Sino trade talks -
SHFE zinc climbed up unexpectedly on Monday May 7 as it traded without being weighed down by its LME counterpart, and as risk-taking sentiment in the market recovered after the US-China trade negotiations. The SHFE zinc index gained 2.49% during the day on May 7 as shorts reduced their positions with a total of 25,700 lots of decline in the SHFE zinc index. Support was seen at 23,000 yuan/mt yesterday. China’s new guidelines for the asset management industry released in late April also bolstered the market, on expectations that monetary policy will ease. Fundamentally, SMM expects prices of futures to rise despite bearish sentiment.
Lead prices soar on tight supply, inventory drop -
Prices of SHFE lead surged to a two-month high on Monday May 7, reversing its weak performance from late March. This is mainly due to the tight supply resulted from environmental restrictions and declining domestic inventory, SMM believes. Supplies of secondary lead has been hit by intensified environmental checks on small-sized, non-certified smelters in Guangxi, Yunnan and Hunan provinces in recent weeks. The shortage of battery scrap also grew the tightness of supplies of secondary refined lead. This narrowed the price gap between secondary refined lead and higher grade primary lead.
Oil Prices Retreat As Market Awaits Iran Fate-
Oil prices fell on Tuesday morning in Asia, retreating from three-and-a-half-year highs as traders waited for U.S. President Donald Trump’s decision on whether the U.S. will re-impose sanctions on Iran.On Monday, oil prices rose above $70 a barrel for the first time since November 2014, as possible Iran sanctions threatened to disrupt oil supplies. Oil markets have remained on edge since Iran took a tough stance in its response to the U.S. regarding a 2015 nuclear deal that will expire on May 12.Trump said on Monday a decision on whether to remain in the Iran nuclear deal or to impose sanctions would be announced at 2:00PM ET (18:00 GMT) on Tuesday, four days earlier than expected.
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