Commodity Capsule: On Tuesday, benchmark 10-year Treasury rates in the United States dropped to a two-month low.
On Thursday, gold prices increased little, staying near the crucial $2,000 per ounce mark as a result of a declining US dollar and lower Treasury rates.
After increases in the previous two days, the dollar was down 0.1% vs its rivals, which reduced the price of gold for holders of other currencies.
In response to OPEC+’s decision to postpone its meeting and fuel speculation that producers may reduce output less than first projected, oil prices fell more than 1% on Thursday, continuing their losses from the previous day.
Because of the US Thanksgiving break, trade was predicted to remain tame.
The ministerial meeting that OPEC+ was supposed to have to discuss cutting oil output was postponed until November 30.
According to sources, producers were having difficulty reaching a consensus on output levels and potential cutbacks in advance of the November 26 conference.
Nigeria, Angola, and the Congo wanted to increase their production quotas for 2024 beyond the interim amounts decided upon at the OPEC+ June summit.
At $16,335 per metric ton, nickel on the London Metal Exchange dropped by as much as 0.6%, the lowest level since April 2021.
Commodity Capsule:
The contract for Shanghai nickel dropped 3.2% to 127,790 yuan, its lowest level since September 2022.
Among the basic metals complex, LME nickel has lost 45% of its value thus far this year, while SHFE nickel has lost 37% on both markets.
According to the International Nickel Study Group, there was a surplus of 155,000 tons of nickel on the world market in the first nine months of this year, compared with a surplus of 60,500 tons the previous year.
The excess is the result of an increase in supply from Indonesia exceeding demand.
A range with a tilt toward the positive has been occupied by other base metals on the LME.
In an attempt to stifle a price surge, China’s state planner announced on Thursday that it will closely watch developments in the iron ore market and tighten oversight of spot and futures trading even further.
Following a “continuous and rapid” rise in iron ore prices, the NDRC announced that it met with iron ore trading businesses and futures firms to examine their activities in the spot and futures markets.
Following the NDRC’s statement, iron ore prices dropped on the Dalian and Singapore Exchanges.
