Precious metals were mixed yesterday, palladium dropped 3.2 percent to $671 at one stage before closing down 2.4 percent at $677, while platinum rallied 1.5 percent to $1,082, silver closed up 0.3 percent and the gold price was off 0.4 percent at $1,173.50 – again the fact gold is getting no traction on the back of the Greek saga shows how investors are just not interested in the metal.
The base metals had a choppy day’s trading yesterday, at the day’s lows, excluding tin, they were down an average of 0.9 percent, but ended the day off an average of 0.3 percent. Tin, however, had a much weaker day, it closed down 3.2 percent at $14,805, with the day’s lows at $14,705. Concerns over Greece and a general lack of bullishness seems to be weighing on sentiment.
This morning the base metals are mixed, although there is a negative bias if you take out the 1.2 percent rebound in tin. Copper is unchanged at $5,760, while the rest are off between 0.2 and 0.4 percent. Volume remains light with 2,254 lots traded – see table below. Interest in the metals markets seems to be extremely low, as seen by the volumes.
The precious metals remain on a back footing with average losses of 0.2 percent with palladium off 0.6 percent at $673, platinum is off 0.4 percent at $1,078, silver is off 0.1 percent at $15.85 and the gold price is up 0.1 percent at $1,174.60.
In Shanghai, the base metals have not followed the LME prices down to the same extent – the metals are off an average of 0.4 percent, with tin off 1.2 percent, nickel is down 1.1 percent, lead is off 0.4 percent and zinc is off 0.2 percent, while aluminium is up slightly and copper is up 0.2 percent at Rmb 42,070. Spot copper in Changjiang is up 0.4 percent at Rmb 42,450-42,550, the backwardation with the futures is at an equivalent of $77 per tonne and the LME/Shanghai copper arb ratio is at 1 to 7.37 for the July date.
Precious metals in Shanghai are little changed with gold at Rmb 237.85 and silver off 0.1 percent at Rmb 3,497.
Equities are generally weaker with the Euro Stoxx 50 little changed, the Dow was off 0.4 percent, but the main feature is the continuing fall in China’s CSI 300 that is off 6.1 percent and is off 17 percent from its peak now. The Nikkei is off 0.1 percent, the Hang Seng is off 1.6 percent and the Kospi is up 0.4 percent. We wait to see if the turning tide in the CSI 300 starts to see money return to the bullion market as a safe-haven.
Currencies are for the most part flat-lined as the markets wait for a decision on Greece – latest rates are: dollar index 95.25, euro 1.1189, sterling 1.5739, yen 123.37, aussie 0.7718, rouble 54.39 and yuan 6.2060.
Data out already shows Japan’s household spending climbed 4.8 percent, with CPI rising 0.1 percent and the unemployment rate unchanged at 3.8 percent. German import prices have dropped 0.2 percent. Later we get EU M3 money supply, revised University of Michigan consumer sentiment and inflation expectations and later Bank of England’s Mark Carney is speaking. Dominating everything though is Greece but the Eurogroup is now not scheduled to meet until tomorrow.
The base metals are not looking too bad, most of the metals are consolidating, tin sold off yesterday and is waiting for direction today, but the likes of copper and aluminium seem to be attracting some scale down buying, which is providing support, but whether there is follow through interest remains to be seen. As we have said recently, we are surprised that there was not more of a positive reaction to recent PMI data – maybe there will be a delayed reaction. Also if money is now flowing out of equities in China, then some may find its way into the metals.
Precious metals are under pressure with palladium falling like a knife, gold and silver prices are weak but for now seem supported, while platinum seems to be attracting some buying. Given the Greece debacle and gold’s apparent lack of interest speaks volumes towards sentiment – if an 11th-hour deal is agreed then gold may well sell-off – that said as there has not be much on the upside for gold on the back of Greek, perhaps there will not be much of a negative reaction. Physical demand for gold in China has been weak as investors have been pouring money into the stock market – now equities are correcting could mean investors look at other asset classes again.
| Overnight Performance | ||||
| BST | 06:23 | +/- | +/- % | Lots |
| Cu | 5760 | 0 | 0.0% | 1076 |
| Al | 1716 | -7 | -0.4% | 319 |
| Ni | 12665 | -45 | -0.4% | 236 |
| Zn | 2035 | -5 | -0.2% | 505 |
| Pb | 1792.5 | -4.5 | -0.3% | 112 |
| Sn | 14990 | 185 | 1.2% | 6 |
| Steel | 300 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | 0.0% | 2,254 | ||
| Gold | 1174.6 | 1.1 | 0.1% | |
| Silver | 15.85 | -0.02 | -0.1% | |
| Platinum | 1078 | -4 | -0.4% | |
| Palladium | 673 | -4 | -0.6% | |
| Average PM | -0.2% | |||
| SHFE Prices 06:41 BST | Change | % Change | |
|
Cu |
42070 | 100 | 0.2% |
| AL | 12765 | 10 | 0.1% |
| Zn | 15660 | -30 | -0.2% |
| Pb | 13110 | -55 | -0.4% |
| Ni | 94400 | -1090 | -1.1% |
| Sn | 110700 | -1370 | -1.2% |
| Average change (base metals) | -0.4% | ||
| Rebar | 2219 | -8 | -0.4% |
| Au | 237.85 | 0 | 0.0% |
| Ag | 3497 | -4 | -0.1% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 12:30am | Japan | Household Spending y/y | 4.8% |
3.5% |
-1.3% |
| 12:30am | Japan | Tokyo Core CPI y/y | 0.1% | 0.1% | 0.2% |
| 12:30am | Japan | National Core CPI y/y | 0.1% | 0.0% | 0.3% |
| 12:30am | Japan | Unemployment Rate | 3.3% | 3.3% | 3.3% |
| 7:00am | Germany | German Import Prices m/m | -0.2% | 0.2% | 0.6% |
| 9:00am | EU | M3 Money Supply y/y | 5.4% | 5.3% | |
| 9:00am | EU | Private Loans y/y | 0.3% | 0.0% | |
| Day 2 | EU | EU Economic Summit | |||
| 3:00pm | US | Revised UoM Consumer Sentiment | 94.6 | 94.6 | |
| 3:00pm | US | Revised UoM Inflation Expectations | 2.7% | ||
| 3:15pm | UK | BOE Gov Carney Speaks | |||
The post Gold price weak, market watching Greece and China’s equity correction appeared first on The Bullion Desk.
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