Gold prices dipped in Asia on Tuesday, but copper held gains as investors eye the potential for a prolonged supply disruption from two of the world's major mines. Gold for April delivery on the Comex division of the New York Mercantile Exchange fell 0.32% to $ 1, 2385.15 a troy ounce. Silver futures for March delivery eased 0.11% to $18.010 a troy ounce.
Overnight, gold prices were little changed during North American morning hours on Monday, with investors hesitant to take strong positions due to the U.S. national holiday for Presidents Day. Headlines from Washington will most likely remain in focus in the week ahead, as traders await further details on President Donald Trump's promises of tax reform, deregulation and infrastructure spending. Cleveland Federal Reserve President Loretta Mester said in a speech in Singapore on Monday she would be "comfortable" raising interest rates at this point if the economy maintained its current pace of performance.
Zinc is in a Record Deficit as Zinc Prices Near Record Highs.
Zinc hit a record shortage in 2016. According to the International Lead and Zinc Study Group, zinc registered a deficit of 286,000 metric tons last year. Global usage of refined zinc metal rose 3.6% while supply remained pretty much flat thanks to a number of mine shutdowns.
The tightening in zinc’s raw material segment accelerated last year thanks to the closure of big mines such as Century, Lisheen and Glencore‘s suspension of 500,000 mt of annual mine capacity. These closures have impacted the supply of mine concentrates drastically and, for the first time, we are seeing an impact in the refined metal market.
Crude edged higher in Asia on Tuesday coming off light overnight activity and with investors attuned to data this week on the supply/demand balance.
Overnight, oil prices edged higher in a familiar trading range during North American morning hours on Monday in electronic trading as U.S. markets were closed for President’s Day on Monday, as market players continued to weigh the prospect of production cuts by major crude-producing nations against a rise in U.S. drilling.
Fresh weekly information on U.S. stockpiles of crude and refined products on Wednesday and Thursday will be closely watched to gauge the strength of demand in the world’s largest oil consumer. The reports come out one day later than usual due to Monday's President's Day holiday. Meanwhile, traders will also continue to pay close attention to comments from global oil producers for further evidence that they are complying with their agreement to reduce output this year.