[SMM comment] US dollar weakens, non-ferrous Puhong Shanghai lead rises more than 1 per cent, last period crude oil rose more than 1 per cent, black is floating green across the line.

Published: Sep 21, 2020 09:49 (GMT+8)

Save

SMM9 March 11: the recent weak operation of the US dollar index, the resurgence of non-ferrous metal support, and the general strength in the morning. Most of the LME metal market was red in the morning trading. By about 09:40 in the morning, Lun Nickel rose nearly 1%, Lun Copper rose nearly 0.3%, Lun lead and Lun Aluminum rose nearly 0.1%, Lun Xi was flat, Lun Zinc fell nearly 0.3%. Domestically, Shanghai lead rose nearly 1.3%, Shanghai Tin rose nearly 1%, and Shanghai Copper rose nearly 0.9%. Shanghai Aluminum and Shanghai Zinc rose nearly 0.7%, while Shanghai Nickel fell nearly 0.4%.

For the black system, the thread fell by nearly 1.6%, the hot coil by nearly 1.3%, stainless steel by nearly 0.3%, coke by nearly 1%, coking coal by nearly 0.4% and iron ore by nearly 2%.

Crude oil rose nearly 1.5 per cent in the previous period, and US oil was basically flat on Friday. A month after a Libyan commander said he would lift the blockade on the country's oil exports, oil prices came under pressure, but supportive signals from the OPEC meeting provided a boost. Us crude oil and Brent crude oil futures rose after Saudi Arabia put pressure on allies to comply with production quotas, Hurricane Sally reduced US production and banks such as Goldman Sachs predicted supply shortages.

In terms of precious metals, Shanghai gold and silver rose nearly 0.6%. Comex gold futures rose last Friday, and the weekly line rose for the second week in a row, as the US dollar weakened and worried about the economic recovery from the novel coronavirus crisis. Analysts point out that the path with the least resistance is upward, because the Fed, all the stimulus measures from central banks around the world, and more fiscal stimulus if a deal is reached in Washington; all the favorable factors point to the rising price of gold.

As of 09:30, the status of contracts in the metals and crude oil markets:

Silver Industry chain Summit Forum

Seminar on the Application of Silver Market in China

Scan the code to participate in the meeting or apply to join the SMM Precious Metals Industry Exchange Group.

SMM comment exclusive report headline recommendation

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

One Bullion completes second Vumba drill hole in Botswana

[SMM Gold flash] One Bullion has completed the second hole of its approximately 3,000-metre diamond-drilling programme at the Vumba gold project in northeastern Botswana. VUDD018 reached 350.85 metres at the Central–Makoba target, while drilling had started on the third hole, VUDD019. Preliminary visual logging recorded repeated silica–carbonate alteration, quartz–carbonate veining and arsenopyrite with lesser pyrite. The oblique hole gives the explorer a second structural view of the Central–Makoba system and will contribute to its three-dimensional geological model. No assays from VUDD018 were available, however, and visual alteration, veining and sulphides do not establish gold grade, mineralised width or economic significance. Laboratory results and QA/QC review are therefore required before the target can be assessed.

6 hours ago

Bullion falls 0.9% as weekly decline reaches 3.4%

[SMM Precious Metals Flash] Spot gold fell 0.9% to US$4,140.06 an ounce by 18:33 GMT on 2 October and was down about 3.4% for the week, Reuters reported. US gold futures settled 1% lower at US$4,162.30. Bullion reversed an earlier gain of more than 1% despite weaker-than-expected September US payroll growth, as elevated Treasury yields and the dollar’s weekly strength pressured non-yielding metals. The reversal shows that weaker employment data alone was insufficient to overcome pressure from interest-rate expectations and long-dated bond yields. Platinum also fell 2% to US$1,692.90, while palladium declined 0.5% to US$1,165.75, with all major precious metals heading for weekly losses. These figures are Reuters’ stated 2 October market snapshots, not current live quotations.

6 hours ago

Afaq outlines US$146 million Egyptian investment plan

[SMM Gold Flash] Afaq Mining has identified a deposit containing about 305,000 ounces of gold at the West Gabal Elba concession in Egypt’s southeastern desert, chairman Mostafa Elbahr told Reuters during the Egypt Mining Forum held on 28–29 September. The privately owned Egyptian company plans to invest about US$146 million over four to five years in further exploration and an initial production facility; the spending and production have not yet occurred. The disclosure adds a prospective source beyond Sukari, which currently dominates Egypt’s modern gold output. It also supports the government’s ambition to lift national production to 800,000 ounces annually by 2030 from roughly 500,000 ounces at Sukari. Reuters did not characterise Afaq’s figure as a mineable reserve or report that its facility had been built; commercial production would still depend on further technical work, permits and financing.

6 hours ago