The base metals for the most part were stronger yesterday with lead leading the way with a 2.2 percent rise to $1,977.50, copper was up 0.8 percent at $6,264.50 and zinc was little changed – aluminium and nickel were off around 0.3 percent, while tin was off 0.9 percent.
Precious metals were mixed yesterday with the gold price and platinum price off around 0.3 percent to $1,206 and $1,152 respectively, silver was up 0.3 percent at $17.14 and palladium was up 0.6 percent at $779.
This morning the base metals are up an average of 0.2 percent, with lead up 0.8 percent at $1,993, aluminium is up 0.4 percent, zinc is up 0.2 percent, copper is unchanged, while nickel is off 0.3 percent at $12,985. Volume remains light with 3,012 lots traded.
Precious metals are little changed, with platinum up 0.3 percent at $1,155.10, while the others are either side of unchanged with the gold price at $1,207.70.
In Shanghai, the July base metals are mixed with nickel leading on the downside with a 1.4 percent drop, tin is down 0.4 percent and lead is up 1.3 percent, aluminium is up 0.1 percent and zinc and copper are up 0.3 percent with the latter at Rmb 45,100.
Spot copper in Changjiang is unchanged at Rmb 45,200-45,320, the backwardation with the futures is at an equivalent of $35 per tonnes and the LME/Shanghai copper arb ratio is at 1 to 7.20.
Precious metals in Shanghai are off around 0.2 percent, with the July gold price at Rmb 242.55 and silver at Rmb 3,654.
Equities – were generally quiet, albeit near highs with the Euro Stoxx 50 up 0.1 percent, the Dow was unchanged, while the S&P 500 was up 0.2 percent. In Asia this morning, the markets are upbeat with the Nikkei up 0.2 percent, the Hang Seng is up 1.8 percent, the CSI 300 is up 1.9 percent and the Kospi is up 0.8 percent.
Currencies – US data has been mixed and that is probably enough to make the markets feel confident that the Fed will not be in a hurry to raise interest rates – as a result the dollar may struggle on the upside. The dollar index was last at 95.17 -off Wednesday’s rebound high of 95.84. The euro is flat at 1.1141, sterling is firmer at 1.5667, the aussie is trying to rebound, last at 0.7919, as are the yen at 120.78 and the yuan at 6.196, while the rouble is flat at 49.75.
The economic agenda is quite busy – Chinese leading index climbed 1.1 percent, up from 0.5 percent previously. Later we get German final GDP and Ifo business climate data, UK public sector borrowing, Italian retail sales, US CPI and there are a host of central bankers speaking, most at the ECB forum on Central Banking, but Fed Chair Janet Yellen is speaking in the US at 6pm BST – see table below for more details.
The base metals for the most part are consolidating after the recent downward corrections, although copper and lead seem to be picking up more dip buying than the others. The corrections were overdue given the extent of most of the gains and the current fundamentals – on balance we would now expect the metals to enter a period of range-trading as the market adjusts to the recent price swings.
The precious metals are consolidating in mid-range, palladium is looking more vulnerable than the others, but with gold, silver and palladium, all recently breaking up through resistance levels it may be that these pullbacks are just a pause in the medium term up trends. A weaker dollar and concerns over Greece could prompt rallies.
| Overnight Performance | ||||
| BST | 06:09 | +/- | +/- % | Lots |
| Cu | 6263 | -2 | 0.0% | 907 |
| Al | 1782 | 6.5 | 0.4% | 554 |
| Ni | 12985 | -45 | -0.3% | 750 |
| Zn | 2211 | 5 | 0.2% | 432 |
| Pb | 1993 | 15.5 | 0.8% | 369 |
| Sn | 15840 | 0 | 0.0% | 0 |
| Steel | 395 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | 0.2% | 3,012 | ||
| Gold | 1207.7 | 1.7 | 0.1% | |
| Silver | 17.16 | 0.02 | 0.1% | |
| Platinum | 1155.1 | 3.1 | 0.3% | |
| Palladium | 778.5 | -0.5 | -0.1% | |
| Average PM | 0.1% | |||
| SHFE Prices 06:25 BST | Change | % Change | |
| Cu | 45100 | 120 | 0.3% |
| AL | 13240 | 15 | 0.1% |
| Zn | 16630 | 50 | 0.3% |
| Pb | 13375 | 175 | 1.3% |
| Ni | 100000 | -1470 | -1.4% |
| Sn | 117850 | -490 | -0.4% |
| Average change (base metals) | 0.0% | ||
| Rebar | 2155 | -17 | -0.8% |
| Au | 242.55 | -0.55 | -0.2% |
| Ag | 3654 | -7 | -0.2% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 12:00am | US | FOMC Member Williams Speaks | |||
| 3:00am | China | CB Leading Index m/m | 1.1% | 0.5% | |
| 3:49am | Japan | Monetary Policy Statement | |||
| 7:00am | Germany | German Final GDP q/q | 0.3% | 0.3% | |
| Tentative | Japan | BOJ Press Conference | |||
| 9:00am | EU | ECB President Draghi Speaks | |||
| 9:00am | Germany | German Ifo Business Climate | 108.3 | 108.6 | |
| 9:30am | UK | Public Sector Net Borrowing | 7.8B | 6.7B | |
| 10:00am | Italy | Italian Retail Sales m/m | 0.2% | -0.2% | |
| 10:45am | UK | MPC Member Shafik Speaks | |||
| 12:00pm | UK | BOE Gov Carney Speaks | |||
| 1:30pm | US | CPI m/m | 0.1% | 0.2% | |
| 1:30pm | US | Core CPI m/m | 0.2% | 0.2% | |
| 2:30pm | EU | ECB President Draghi Speaks | |||
| 2:30pm | UK | BOE Gov Carney Speaks | |||
| 2:30pm | Japan | BOJ Gov Kuroda Speaks | |||
| 6:00pm | US | Fed Chair Yellen Speaks | |||
The post Gold price consolidates after recent downward correction appeared first on The Bullion Desk.
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