SHANGHAI, Aug. 26 (SMM) – Metals Prices in Shanghai were narrowly fluctuating on August 26th following losses in both overseas and Chinese stocks prices overnight, and best performers including lead and zinc during previous day also opened lower today and stayed near Thursday closing prices, as the market is waiting for Bernanke remarks to be delivered during the global central bank meeting.

US stock prices closed lower on August 25th following a three-day up, with the Dow Jones Industrial Average Index falling by 170.89 points or 1.51% to 11,149.82, the NASDAQ Composite Index down 48.06 points or 1.95% to 2,419.63 and the S&P 500 Index down 18.33 points or 1.56% to 1,159.27. This was a combined result of unexpected surge in new unemployment claims in the US, German downgrade rumor which Moody’s, Standard & Poor’s and Fitch the top 3 rating agencies later defied as well as dialed back expectation for QE3 among investors. The declines in stock markets were in contrast to gains of NYMEX gold futures which closed USD 5.9/oz or 0.34% higher at USD 1,763.2/oz.

Market focus at present is the attitude of US Fed present Bernanke to be made clear during the annual central bank meeting. With disappointing US economic data during recent period, investors speculate a third round of quantitative easing may be provided by US Fed to stimulate slowed economic growth in the country. However, there are also many investors and economists who see little chance for QE3. There are three outcomes of Bernanke remarks. If Bernanke implies to launch QE3, which will press down the US dollar, metals prices will move up with improved investor risk appetite. If QE3 hints were not provided, metals prices will drop on stronger risk aversion sentiment. President Bernanke may also rely on his “ambiguity” language skill in order to avoid huge impact on global markets.