Market Nuggets
Shanghai nickel hits record highs as Indonesia plans to expedite ore export ban - SP Angel
Shanghai nickel is at a new record high following the news that Indonesia is planning to ban exports of nickel ore from next year. The most-traded nickel contract on the Shanghai Futures Exchange is up 8.9%, trading at record high of 149,190 yuan ($21,034.01) a tonne. London nickel, in the meantime, is up 3.6% and tarting at $18,710 a tonne. “Indonesia announced on Friday that it would bring forward by two years an ore export ban originally scheduled for 2022, ending several weeks of speculation that such a move was imminent,” write analysts at SP Angel.
By Anna Golubova of Kitco News; agolubova@kitco.com
Gold regroups as it moves above $1,540: INTL FCStone
Tuesday September 3, 2019 08:38
Gold is once again climbing towards its six-year highs as prices move above $1,540, says INTL FCStone independent consultant Edward Meir. “Despite a late-week fade, gold has regrouped and is currently at $1,540, near its recent high (and six-year peak) of $1,546. The precious metal finished 7.4% higher in August, gaining ground for a fourth straight month,” Meir writes. Hong Kong protests and declining global yields are pushing gold prices higher. “Mr. Trump has also linked the trade talks to the protests in Hong Kong, saying he will calibrate his response to whatever Beijing does on the issue. Developments over the weekend in Hong Kong have deteriorated noticeably; protesters barricaded roads on Sunday, leaving traffic gridlocked and stranding hundreds at the main airport,” he adds.
By Anna Golubova of Kitco News; agolubova@kitco.com
Remain bullish on gold: 'Multiple event risks' support higher prices - TD Securities
Tuesday September 3, 2019 08:38
Gold prices are taking a break from rallying, but the macro-environment remains supportive of the yellow metal as several event risks could trigger another rally, according to TD Securities. “We still see multiple event risks on the horizon that could catalyze the next leg higher in gold as a dovish turn from central banks, along with inverted yield curves and a surging pile of negative-yielding debt serve as a great fundamental backdrop to remain bullish the yellow metal,” TD Securities strategists write. Trump’s continued criticism of the Federal Reserve and worries on the geopolitical front are also continuing to play a role, the strategists add. “Politics in Europe, and the increasingly tense situation in Hong Kong as Beijing lays the groundwork to step-in if needed, provides additional scope for gold to continue moving higher despite the stretched positioning.”
