Commodities: Russia caps gains in gold

Alexander Bueso Sharecast | 11 Aug, 2017 18:23 | | |

Gold bars

Friday saw Russian Foreign Minister Sergei Lavrov urge Pyongyang and Washington to sign up to a previously unveiled joint Russian-Chinese plan under which North Korea would freeze missile tests.

Speaking on the matter, Lavrov said, "Unfortunately, the rhetoric in Washington and Pyongyang is now starting to go over the top," adding "We still hope and believe that common sense will prevail."

Friday marks the third day in the US/N. Korean standoff, which has so far seen spot gold benefit over $30 from where it was trading at earlier this week, at $1,252. Bcause of those comments from Russia, the precious metal was only able to notch up a $2 move on the day to trade at $1,287 by the London close, also due in part by a weaker dollar which came as a result of worse than expected CPI and core CPI data (0.1% versus market expactations of 0.2%).

Michael McCarthy, chief market strategist at CMC Markets said, "I think the issue that is affecting the market is the general risk sentiment of saber-rattling between Washington and Pyongyang."

In other precious metals, spot platinum was up 0.31% to $984.76/oz. and palladium was down 0.45% to $894.96/oz..

After suffering major losses on Thursday, both WTI (West Texas Intermediate) and Brent crude stabalised on Friday, with both classes trading slightly lower on the day. WTI for September delivery was down 0.35% on the day with WTI for October delivery down 0.25%, to trade at $48.42 a barrel and $51.77, respectively.

Regarding the recent fall in oil, ANZ bank said in a note, "Crude oil prices failed to hold recent gains, with a nervous market starting to doubt recent falls in inventories," adding that "supply-side issues also weighed on prices."

Copper saw renewed buying interest at the $6,344 per metric tonne mark to take the base metal higher 0.3% by 1700 BST to trade at $6,430.

The red metal has seen a strong rally recently on the back of increasing optimism around Chinese growth, but stalled at the $6,500 mark as speculators booked profits.

In soft commodities, soybean futures for November delivery were fairly unchanged on the day, up 0.06% to $9.45/bushel, September corn was up 0.25% to $3.60 and cotton for December delivery was up 0.64% to $68.94/lb.

These rallies came after significant falls on Thursday following reports from the US Department of Agriculture (USDA) stating that harvests for all three will be significantly higher over the next month or so.

More news

17 Oct US close: Markets finish higher amid busy earnings season

US markets finished in the green on Tuesday, with the Dow closing just short of the 23,000 mark which it breached for the first time ever earlier in the session, amid a busy third quarter earnings season on Wall Street.

17 Oct Europe close: Stocks slip ahead of US Fed Beige Book

Stocks on the Continent finished slightly lower as investors bid their time ahead of the release of the US central bank's Beige Book on Wednesday, against the backdrop of fresh intra-day records on Wall Street's main benchmarks with the Dow Industrials having climbed above the 23,000 point mark for the first time ever.

17 Oct Buy Spain as political risk is 'overstated' - Credit Suisse

Spanish equities look unusually cheap, said Credit Suisse on Tuesday, as political risk is "overstated" and the country is on track for at least 3% growth, with employment, housing and construction all on a growth tear.

17 Oct London close: Stocks move lower even as Sterling slips

London stocks closed lower on Tuesday even as the pound fell back against the dollar, albeit following a brief pop higher after data showed inflation surged to a five-year high last month, amid somewhat dovish remarks from Bank of England policymakers.

17 Oct Director dealings: Beazley executive director sells after profit warning

Adrian Cox, executive director of risk insurance and reinsurance group Beazley, sold 180,009 shares in the company on Tuesday at the price of 500p per share.

17 Oct Credit Suisse cuts Tate and Lyle's target price, reiterates 'neutral' rating

Ahead of Tate & Lyle's interim results on 2 November, Credit Suisse updated its forecasts and cut its target price to 710p while reiterating its 'neutral' rating.

17 Oct US open: Dow Industrials clambers atop 23,000 mark for first time

The Dow Industrials climbed past the 23,000 points mark for the first time ever, as the third-quarter earnings season got into full swing, and then slipped lower.

17 Oct Higher inflation means benefits pain for households, says IFS

State benefits for roughly 10m UK families will be reduced by £450 a year in real terms after inflation reached its highest level in five years on Tuesday, the Institute for Fiscal Studies calculated.

17 Oct FTSE 250 movers: Virgin Money gains on update, Workspace boosted by JPM note

London's FTSE 250 was down 0.4% to 20,140.65 in afternoon trade on Tuesday.

17 Oct Johnson and Johnson raises full year targets after strong third quarter

Healthcare giant Johnson and Johnson posted higher than expected profits for the three months to 30 September thanks to increased demand for its new cancer drugs and the additional revenue afforded to the group from its June acquisition of Swiss biotech company Actelion.