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The UK Prime Ministers Office: Prime Minister Burnham held talks with business groups and said the UK will act "more aggressively" if markets and regulations fail to meet expectations.The SC crude oil main contract weakened during the session, with the decline widening to 3.02%, and last quoted at 574.9 yuan/barrel; the trading volume was approximately 23.921 billion yuan, with a decrease of nearly 600 lots in open interest during the day, and open interest slightly declining.Iranian Foreign Minister Araqchi: Iran has made it clear that it will not succumb to US bullying and will not respond to threats, pressure or intimidation.July 24th - U.S. new home sales rebounded for the first time in three months in June, driven by significant price cuts from developers that offset high mortgage rates and weak consumer confidence. Junes annualized new home sales rose 1.6% year-over-year to an average of 628,000 units, exceeding the expected 607,000 units. The median selling price fell 2.7% year-over-year to $398,300, marking the fifth year-over-year decline in six months this year. The improved sales in June likely reflect substantial discounts, as developers continue to offer promotions and price reductions to stimulate weak market demand.On July 24th, Shanghai Auntie (02589.HK) issued a positive profit forecast, expecting to record a profit of approximately RMB304 million to RMB325 million for the first half of the year, representing an increase of approximately 50% to 60% compared to a profit of RMB203 million in the same period last year. The Group expects to record an adjusted profit (non-IFRS accounting standards) of approximately RMB331 million to RMB356 million for the reporting period, representing an increase of approximately 36% to 46% compared to an adjusted profit of RMB244 million in the same period last year.

Due to Fed fears, industrial metals will outperform gold this week

Haiden Holmes

Oct 14, 2022 15:05

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Copper and aluminum prices were able to resist a weakening economic outlook due to signs of a tightening supply.


The price of gold plummeted considerably below $1,650, a crucial support level, on Thursday, as September U.S. CPI inflation data came in higher than expected. Then, however, they recovered fast, mirroring a broader risk-on rally that weakened the currency.


As of 20:45 E.T., spot gold fell 0.3% to $1,661.98 per ounce, while gold futures fell 0.5% to $1,668.20 per ounce (00:45 GMT). This week, it was anticipated that both assets would lose 1.8% and 2.3%, respectively.


The outlook for gold was further clouded by higher-than-expected U.S. inflation numbers, which present the Federal Reserve with a greater incentive to continue significantly hiking interest rates. In the next few months, the dollar will likely impose extra pressure on gold as U.S. interest rates continue to rise.


According to this notion, it was anticipated that other precious metals would likewise finish the week lower. This week, silver dropped more than 7%, while platinum dropped 2.2%.


The greatest drag on bullion prices this year was a rise in interest rates, since higher yields increased the prospective cost of owning gold.


However, risk-sensitive markets surged on Thursday in anticipation that the peak of U.S. inflation had been achieved. Wall Street's extraordinary gain was also fueled by technical purchasing, which stimulated a wider desire for risk.


As a result, industrial metals grew. Copper futures rose 1% on Thursday and were ready to end the week with a gain of almost 2%.


On Friday, copper futures climbed 0.1% to $3.4630 per pound. In addition, there were indications that sanctions against Russia were producing a supply issue, which will likely lead to a rise in the price of copper in the coming days.


Chile's Codelco, the world's largest copper miner, is reportedly selling copper to European buyers at a record-high premium, citing supply limitations.


Last week, aluminum prices spiked due to supply shortages created by sanctions against Russian production. The metal was anticipated to increase by greater than 2% for the week.


This year, the faltering global economy has had a considerable impact on the prices of industrial metals.

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