Gold Prices Decline in Asia, but Copper Firm as Supplies Eyed

On Tuesday, gold prices plunged in Asia, but copper held gains as investors watch the potential for a lengthy supply interruption from two of the world’s major mines.

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On Tuesday, gold prices plunged in Asia, but copper held gains as investors watch the potential for a lengthy supply interruption from two of the world’s major mines.

Delivery of gold for April on the Comex division of the NYMEX declined 0.32% to $1,2385.15 a troy ounce.  Delivery  of a silver future  in March  eased 0.11% to $18.010 a troy ounce.

Copper futures surge  0.22% to $2.756 a pound as worries over supply interruptions in Chile and Indonesia, supported prices as labor strikes at BHP Billiton (LON:LON: BLT)’s Chilean Escondida and Freeport-McMoran (NYSE:FCX)’s Indonesian Grasberg mines continues. Shared, the mines produce approximately 10% of the world’s total copper supply, 10:09PM ET.

Suddenly, gold prices slightly changed during North American morning hours on Monday, with investors undecided to take strong positions because of the U.S. national holiday for Presidents Day.

Headlines from Washington will most likely to stay in focus in the week onwards, as traders await further details on President Donald Trump’s promises of tax reform, deregulation and infrastructure spending.

Market participants also anticipated additional clues on the scheduling  of the next U.S. rate hike. In the week onward, global financial markets will concentrate on minutes of the Fed Reserve’s current policy meeting along with housing-related data for more indications on the timing of the next U.S. rate hike.

This week, there are also more than a few Fed speakers, including Minneapolis Fed President Neel Kashkari, Philadelphia Fed President Patrick Harker and Atlanta Fed President Dennis Lockhart.

On Monday, Cleveland Fed l Reserve President Loretta Mester stated in a speech in Singapore she would be “comfortable” raising interest rates at this point if the economy maintained its current pace of performance.

Last week, Fed Chair Janet Yellen stated that the U.S. central bank will possibly need to raise interest rates at the forthcoming meeting, although she flagged considerable improbability over economic policy under the Donald Trump administration.

“Fed fund futures priced in a less than 15% chance of a rate hike in March. The odds of a June increase were seen at around 70%,”  according to the reports.

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