Shares of commodities producers ticked down as traders digested the Federal Reserve's policy statement. "December is definitely in play," said analysts at brokerage Bank of America Merrill Lynch Global Research, in a note to clients. After recent Fed speakers had lulled markets into expectations for a postponement of rate hikes, the return of a December hike as a possibility jolted the dollar and weighed on commodities prices. Gold for December delivery closed down 1.6% at $1,294.80 a troy ounce on the Comex division of the New York Mercantile Exchange, the largest drop since July 3, as traders reassessed the outlook for central-bank policy. The price of zinc, steel and other industrial metals have risen markedly in Asia for the year to date, according to one brokerage. "Steel prices have been driven by a series of capacity closures, including blast furnaces and sub-standard furnaces, and plans to allow for steel plant output cuts of as much as 50% in the winter months in Hebei [China]," said analysts at brokerage Nomura Securities, in a research note.
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(END) Dow Jones Newswires
September 21, 2017 16:26 ET (20:26 GMT)