Metals rally on trade optimism

Metals rally on trade optimism

On Wednesday, zinc and nickel prices bounced off from a selloff just a day earlier on a report China and America would resume trade talks, while a weaker evergreen buck also backed market sentiment.

Nickel tacked on by 3.48% hitting 12,637.50, zinc acquired 3.14% being worth 2,394.50.

American Treasury Secretary Steven Mnuchin reached out to Chinese officials with an offer to resume trade negotiations in the next few weeks.

The negotiations would take place before the current presidential administration implements extra levies on China’s imports. It backed investor expectations that an upbeat outcome on trade negotiations could convince Trump to give up his initiative to slap levies on an extra $267 billion of China’s imports.

Optimism for an improvement to China-US trade relations arose just a day after the Chinese government informed the World Trade Organization of its intention to slap $7 billion a year in sanctions on America, referring to America’s non-compliance with a ruling in a clash over American dumping duties.

The Chinese economy has suffered since the beginning of the trade conflict with America, raising questions as for the strength of demand because China turns out to be the world’s number one consumer.

Copper managed to ascend by 2.04% reaching $2.68.  Aluminum jumped by 0.49% trading at 2,057.75.

At the same time, precious commodities tacked on because a weaker greenback contributed to upside momentum.

Estimating the greenback’s purchasing potential versus its primary rivals the USD index went down by 0.35% being worth 94.72.

Greenback-denominated assets, including gold are very sensitive to fluctuations in the American dollar. A dive in the US currency makes the yellow metal less costly for those who hold foreign currency, thus increasing demand.

December delivery gold futures added 0.85% on the Comex exchange showing $1,212.40 troy ounce.

Besides this, silver futures jumped by 0.86% trading at $14.28 a troy ounce.

 

 

 

Similar

Something more Important than NFP
Something more Important than NFP

For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.    

Latest news

News for The Week
News for The Week

US stock markets started falling, while the US dollar is rising. What to expect from

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera