Commodities Update — Gold dips; Copper rebounds; Starbucks misses China sales estimates

0
120

RIYADH: Gold prices fell on Wednesday as higher US Treasury yields and a looming interest rate hike announcement by the Federal Reserve dented demand for zero-yield bullion.

Spot gold was down 0.2 percent at $1,864.61 per ounce at 0438 GMT. US gold futures fell 0.4 percent to $1,863.50.

Silver up, Palladium flat

Spot silver gained 0.1 percent to $22.57 per ounce, while platinum rose 0.6 percent to $967.34.

Palladium was flat at $2,256.38.

Grains flat

Planting delays in parts of the US Midwest looked set to put a floor under the Chicago corn market as prices were largely unchanged on Wednesday after closing lower in the previous session.

The most-active corn contract on the Chicago Board of Trade was up a quarter of a cent at $7.93-1/4 a bushel at 0316 GMT.

Wheat rose 0.2 percent to $10.47-1/2 a bushel, and soybeans gained 0.1 percent to $16.31-1/4 a bushel.

Copper rebounds on bargain-hunting

London copper rose on Wednesday as investors took advantage of a steep fall in the previous session to buy the metal, although the demand outlook still appeared weak with COVID-19 lockdowns in critical consumer China and aggressive interest rate hikes globally.

Benchmark three-month copper on the London Metal Exchange was up 1.1 percent at $9,516.50 a ton at 0502 GMT, recovering from an over 3 percent fall on Tuesday.

Starbucks misses sales estimates on China COVID curbs

Starbucks Corp. suspended its guidance for the rest of its fiscal year on Tuesday as the company’s sales growth missed Wall Street targets due to China’s strict COVID-19 curbs.

Comparable sales in China, where the chain has rapidly expanded in recent years to tap rising coffee consumption, declined 23 percent, overshadowing 12 percent growth in North America.

China’s strict lockdown measures to meet its zero-COVID-19 policy have upended operations of most global companies with a significant presence in the Chinese market, including Apple, Gucci-parent Kering and Taco Bell-owner Yum China.

“I remain convinced Starbucks’ business in China will be eventually larger than our business in the US,” CEO Howard Schultz said in a call with investors.

He expects an “even greater impact” on its third-quarter results because of the Shanghai lockdowns and the resurgence of the virus in Beijing and other cities.

Demand in its US stores has been “relentless,” Schultz said.

Shares rose 5 percent in extended trading following the results.