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25 Feb 2014
Commodities: China demand concerns continue to weigh in prices
FXStreet (London) - Gold remains near four-month highs, dipping 0.18 percent from highs at USD1,340.04/oz. Spot gold is currently trading at USD1,334.01.
While tensions in the Ukraine have added to haven demand for gold, the biggest driver has come from concerns over US growth as well as tightening conditions in China and EM concerns.
Although the US has moved into a relative tightening stage, trimming its asset purchases by USD10bn a month to its current USD65bn level, haven demand for gold remains strong as higher dollar borrowing costs hit emerging markets with high levels of dollar debt and balance of payment overhangs.
Industrial demand concerns
Industrial metals remain under pressure on concerns over slowing Chinese demand. Prices were hit yesterday on a report that some of the major Chinese banks were curbing lending to real-estate constructors on oversupply concerns.
Copper prices for May delivery are down 0.65 percent to USD321.60, despite copper stockpiles hitting a 14-month low.
3-month aluminium futures are down 0.51 percent to USD1,762/ton.
Energy prices decline
WTI crude prices have fallen on expectations increased stockpiles and bets that futures have strayed into overbought territory.
WTI for April delivery is trading at USD102.03 a barrel, down 0.77 percent.
Consensus expectations are that the US energy administration agency report released tomorrow will see a rise in US crude inventories.
WTI prices, along with natural gas, have been held high in 2914 on below normal US temperatures boosting heating fuel demand.
Natural gas has declined 2.24 percent to USD5.32.
While tensions in the Ukraine have added to haven demand for gold, the biggest driver has come from concerns over US growth as well as tightening conditions in China and EM concerns.
Although the US has moved into a relative tightening stage, trimming its asset purchases by USD10bn a month to its current USD65bn level, haven demand for gold remains strong as higher dollar borrowing costs hit emerging markets with high levels of dollar debt and balance of payment overhangs.
Industrial demand concerns
Industrial metals remain under pressure on concerns over slowing Chinese demand. Prices were hit yesterday on a report that some of the major Chinese banks were curbing lending to real-estate constructors on oversupply concerns.
Copper prices for May delivery are down 0.65 percent to USD321.60, despite copper stockpiles hitting a 14-month low.
3-month aluminium futures are down 0.51 percent to USD1,762/ton.
Energy prices decline
WTI crude prices have fallen on expectations increased stockpiles and bets that futures have strayed into overbought territory.
WTI for April delivery is trading at USD102.03 a barrel, down 0.77 percent.
Consensus expectations are that the US energy administration agency report released tomorrow will see a rise in US crude inventories.
WTI prices, along with natural gas, have been held high in 2914 on below normal US temperatures boosting heating fuel demand.
Natural gas has declined 2.24 percent to USD5.32.