SHANGHAI, Aug. 23 (SMM) – Strong safe haven demand for gold and US dollar in financial markets continued overnight, pushing London gold price to USD 1,900/oz, a record high. The US dollar index also closed higher at 74.159, while commodity prices erased earlier gains and gains of US stocks were limited as a result. The Libya civil war that has lasted several months recently got more attention from global markets after the rebels grabbed fully control, which led New York crude prices to close over 2% higher overnight.

After hitting an intraday low of USD 2,333/mt during, LME aluminum prices slightly rebounded following rising crude prices during the day, and finally closed at USD 2,348.3/mt, down USD 1.8/mt or 0.07%. Total positions rose by over 10,000 lots to 733,600 lots.

SMM expects LME aluminum prices to continue test of the 5-day moving average and fluctuate between USD 2,330-2,370/mt. Most active SHFE 1111 aluminum contract prices are expected to open higher near RMB 17,200/mt and fluctuate between RMB 17,150-17,350/mt due to a uncertain future. Spot premiums are expected to stay between positive RMB 180-250/mt over SHFE current-month aluminum prices. Market transactions will be sluggish due to weak consumption.