Gold price under pressure from high US bond yields in holiday trading week
Gold has gained 27 per cent so far this year.
Prices of tin jumped on Thursday after the International Tin Association confirmed the ban on mining by Myanmar’s ethnic minority Wa militia from Aug. 1.
Three-month tin on the London Metal Exchange gained as much as 3.8% in the Asian morning trading session and was up 3% to $28,245 per metric ton by 0502 GMT.
The most-traded September tin contract on the Shanghai Futures Exchange added 1.4% to 230,280 yuan ($32,023.36) per metric ton.
“We have confirmation that Wa State mines were closed on August 1 as mandated,” the ITA told Reuters.
Myanmar accounted for 77% of China’s tin ore imports last year, Chinese customs data showed. The Wa region is estimated to have accounted for over 70% of Myanmar’s tin production in 2022, the ITA said.
The ITA said tin smelters in China, the biggest consumer of Myanmar’s tin ore, have ensured enough immediate supply by stockpiling the metal previously.
The ban was announced in April when it immediately boosted prices of the metal that is used in the electronics and semiconductors sectors.
The ban’s short-term impact had been priced in, but the lasting supply disruption and steady demand outlook will support tin prices, said analysts at Orient Securities.
Despite supply concerns, weighing on the market was a strong dollar, making it less attractive to buy the greenback-priced commodity.
Most other metals on SHFE lost. Copper slid 1.2% to 68,930 yuan a metric ton, aluminum eased 0.5% to 18,440 yuan, zinc dropped 1.4% to 20,835 yuan, lead little moved at 15,950 yuan and nickel fell 2.8% to 167,590 yuan.
LME copper dipped 0.2% to $8,492.50 a metric ton, zinc nudged 0.1% lower to $2,480, lead slipped 0.1% to $2,145, while nickel climbed 0.5% to $21,665, aluminum gained 0.5% at $2,220 a metric ton.
($1 = 7.1910 Chinese yuan renminbi)
(By Siyi Liu and Andrew Hayley; Editing by Rashmi Aich and Sohini Goswami)
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