Gold and silver prices were weaker on the back of the stronger dollar and less concern over Greece, but platinum bucked the trend with a 0.9 percent gain to $1,066, while palladium was unchanged at $694.
The base metals closed up an average of 1.3 percent yesterday, led by a three percent rise in nickel to $12,850, while copper and lead rallied 1.7 percent with copper closing at $5,752. Better than expected flash PMI manufacturing data in China, Germany, France and the EU, helped underpin the stronger tone.
This morning the base metals are firmer by an average of 0.2 percent, lead and zinc lead the way with gains of 0.4 percent and copper is up 0.3 percent at $5,768 – volume has been light with 2,119 lots traded – see table below for more details.
Precious metals are up an average of 0.3 percent led by the PGMs, while gold and silver are little changed with gold at $1,177.60.
In Shanghai, the base metals are up an average of 0.5 percent, led by lead and nickel that are up around 1.2 percent, zinc is up 0.5 percent, aluminium 0.2 percent and copper is up 0.4 percent at Rmb 42,040 – tin is the only one bucking the trend with a 0.3 percent drop.
Spot copper in Changjiang is up 0.1 percent at Rmb 42,300-42,450, the backwardation is at an equivalent of $66 per tonne and the LME/Shanghai copper arb ratio is at 1 to 7.28 – arb window still closed.
Precious metals are weak with silver off 1.7 percent and gold up 0.8 percent.
Equities were stronger with the Euro Stoxx 50 up 0.8 percent yesterday and the Dow closed up 0.1 percent as US data was mixed with durable goods, HPI and flash manufacturing PMI weaker than expected, while new home sales and Richmond manufacturing index were better than expected. In Asia, the Nikkei is up 0.5 percent and is set to recaptured levels not seen since 1996, the Hang Seng is little changed, the Kospi is up 0.2 percent and the CSI 300 is off 0.2 percent.
Currencies are in consolidation mode, the dollar rallied yesterday to 95.65, but is last at 95.18, the euro is last at 1.1205, sterling is edging back from high ground, last at 1.5758, the aussie is in mid-ground at 0.7730, as are the rouble at 53.83 and the yuan at 6.2065, while the yen is weaker at 123.91.
On the data front, Japan’s Services Producer Price Index climbed 0.6 percent and China’s leading indicators climbed 1.1 percent, slightly down from the previous reading of 1.4 percent. Data out later includes: German Ifo business climate, UK mortgage approvals, US GDP, GDP prices and US crude oil inventories – see table below for more details.
The base metals are extending their gains from yesterday and with many of the metals pulling back a long way in recent weeks they had become oversold and therefore some short-covering is not surprising, especially given yesterday’s PMI data in China and Europe. We expect these rebounds to run for a while now.
With concerns over Greece now on a back burner, at least for a few days, it is not surprising that gold is struggling again, silver has struggle for longer but both these metals have generally seen good underlying support in recent weeks, so we might now see if that remains the case. The PGMs have been extremely weak of late but now, like the base metals, they are getting some lift, but the rebounds look half-hearted for now and the metals remain vulnerable. That said, we feel the PGMs are extremely oversold so would not be surprised to see some strength return, but it will probably need to be preceded by a broad based rally in industrial metals.
| Overnight Performance | ||||
| BST | 06:47 | +/- | +/- % | Lots |
| Cu | 5768 | 16 | 0.3% | 960 |
| Al | 1729 | 4 | 0.2% | 316 |
| Ni | 12855 | 5 | 0.0% | 448 |
| Zn | 2063.5 | 9 | 0.4% | 261 |
| Pb | 1802.5 | 8 | 0.4% | 134 |
| Sn | 15300 | 0 | 0.0% | 0 |
| Steel | 300 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | 0.2% | 2,119 | ||
| Gold | 1177.6 | -0.3 | 0.0% | |
| Silver | 15.83 | 0.01 | 0.1% | |
| Platinum | 1069.6 | 3.6 | 0.3% | |
| Palladium | 698.8 | 4.8 | 0.7% | |
| Average PM | 0.3% | |||
| SHFE Prices 06:58 BST | Last | Change | % Change |
| Cu | 42040 | 180 | 0.4% |
| AL | 12790 | 20 | 0.2% |
| Zn | 15695 | 75 | 0.5% |
| Pb | 13190 | 175 | 1.3% |
| Ni | 95870 | 1020 | 1.1% |
| Sn | 113700 | -360 | -0.3% |
| Average change (base metals) | 0.5% | ||
| Rebar | 2239 | 5 | 0.2% |
| Au | 238.2 | -1.85 | -0.8% |
| Ag | 3501 | -62 | -1.7% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 12:50am | Japan | Monetary Policy Meeting Minutes | |||
| 12:50am | Japan | SPPI y/y | 0.6% | 0.4% | 0.7% |
| 3:00am | China | CB Leading Index m/m | 1.1% | 1.4% | |
| 9:00am | Germany | German Ifo Business Climate | 108.2 | 108.5 | |
| 9:30am | UK | BBA Mortgage Approvals | 43.1K | 42.1K | |
| All Day | EU | Eurogroup Meetings | |||
| 1:30pm | US | Final GDP q/q | -0.2% | -0.7% | |
| 1:30pm | US | Final GDP Price Index q/q | -0.1% | -0.1% | |
| 3:30pm | US | Crude Oil Inventories | -1.8M | -2.7M | |
The post Gold price weaker as concerns over Greece ease appeared first on The Bullion Desk.
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