Commodities Daily - May 20, 2019

> Gold continues to drift lower, trading at $1,275/oz this morning. The ongoing strengthening of the dollar continues to pressure gold prices, while selling of gold recently by central banks remains another negative factor. At the center of attention today will be a speech in Atlanta by Fed Chairman Jerome Powell (late at night Moscow time). Minutes from the previous monetary policy meetings will be forthcoming from the Fed on Wednesday and the ECB on Thursday. With Powell speaking today and Draghi also slated to speak this week, the rising global risks may mean that we hear messages that are generally supportive for gold. We expect gold to edge higher to the $1,280-1,285/oz mark today.> Base metals trade sideways amid elevated uncertainty over the US-Chinese trade war. Base metals closed lower on Friday, having failed to pare back morning losses despite Washington abolishing duties on Canadian and Mexican steel and aluminum and deciding to postpone import duties on cars and car components from the EU for six months. This morning, the markets have consolidated. Over the weekend, there was no let-up in the US and Chinese rhetoric. We expect base metals to continue trading sideways until specific dates are set for the resumption of talks.