Precious metals were weaker on Friday with average losses of 0.6 percent led by a 1.3 percent drop in platinum to $1,092 while gold prices closed off 0.1 percent at $1,180.80 – platinum’s discount to gold has climbed to $88/oz.
Base metals were generally weaker on Friday, there were some attempts to rebound/consolidate after Thursday’s weakness, but the complex closed off an average of 0.3 percent, with nickel off 1.5 percent, while copper bucked the trend with a 0.5 percent gain to $5,915. Zinc recouped earlier losses, it managed to close up 0.1 percent at $2,129.50, having been down as low as $2,095.
This morning, the base metals are off an average of 0.6 percent, with copper and nickel off one percent, with copper at $5,858, aluminium is off 0.9 percent , lead and zinc are off 0.5 percent ,while tin is up 0.3 percent. Volume has been higher than of late with 3,652 lots traded.
Precious metals are for the most part consolidating with gold, silver and platinum little changed, although palladium is off 0.7 percent at $731.20.
In Shanghai, the base metals are down an average of 0.5 percent, aluminium and zinc are little changed, while nickel is off 1.6 percent, tin and lead are off 0.5 percent and copper is down 0.3 percent at Rmb 42,580. Spot copper in Changjiang is off 0.5 percent at Rmb 42,800-42,900, the spread is at an equivalent of $51 per tonne and the LME/Shanghai copper arb ratio is at 7.29, which is wider as LME prices have come under further pressure, but the arb window remains closed.
Precious metals in Shanghai have gold unchanged, while silver is off 0.3 percent
Equities are jittery as they were on Friday when the Euro Stoxx 50 was off 1.4 percent and the Dow closed down off 0.8 percent. This morning, the Nikkei is off 0.2 percent, the Hang Seng is down 1.3 percent, the CSI is off 0.7 percent and the Kospi is down 0.5 percent.
Currencies – the dollar is edging higher with the dollar index at 95.30, the euro is holding up well considering the deterioration in talks with Greece, it is last at 1.1203, sterling is firm at 1.5540, the aussie is at 0.7720, the rouble is weaker at 55.30, the yen is at 123.44 and the yuan is weaker at 6.2087.
On the economic agenda are the EU trade balance, US Empire state manufacturing, industrial production, capacity utilisation, NAHB housing market index and TIC long-term purchases. In addition, German Bundesbank President Jens Weidmann and ECB President Mario Draghi are talking – see table below.
The base metals are under pressure this morning with copper and aluminium extending on the downside and the others are looking weak too. Concerns over Greece seem to be weighing on sentiment across markets with equities under pressure this morning and sentiment in China remains bearish. As such, it does look as though prices are likely to fall further, although judging by the number of underlying tails on recent candlesticks there is dip buying interest around, even if there is a lack of follow through buying. Aluminium is now at a level not seen since March 2014.
The industrial precious metals are under pressure with prices either extending lower, or sitting on support levels, while gold prices are holding up slightly better. The overall weakness seems to be on the back of risk reduction across markets, which we put down to Greece, but maybe Greece is providing some support to gold and that could increase of investors start to feel the need for a safe-haven.
| Overnight Performance | ||||
| BST | 06:48 | +/- | +/- % | Lots |
| Cu | 5858 | -57 | -1.0% | 1549 |
| Al | 1725 | -15 | -0.9% | 887 |
| Ni | 13000 | -125 | -1.0% | 387 |
| Zn | 2119 | -10.5 | -0.5% | 726 |
| Pb | 1853 | -9.5 | -0.5% | 95 |
| Sn | 14945 | 45 | 0.3% | 8 |
| Steel | 300 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | -0.6% | 3,652 | ||
| Gold | 1180.4 | -0.4 | 0.0% | |
| Silver | 15.9 | -0.03 | -0.2% | |
| Platinum | 1092.1 | 0.1 | 0.0% | |
| Palladium | 731.2 | -4.8 | -0.7% | |
| Average PM | -0.2% | |||
| SHFE Prices 06:58 BST | Change | % Change | |
| Cu | 42580 | -140 | -0.3% |
| AL | 12750 | 0 | 0.0% |
| Zn | 16195 | 0 | 0.0% |
| Pb | 12870 | -70 | -0.5% |
| Ni | 98060 | -1630 | -1.6% |
| Sn | 113520 | -590 | -0.5% |
| Average change (base metals) | -0.5% | ||
| Rebar | 2290 | -31 | -1.3% |
| Au | 239.35 | 0 | 0.0% |
| Ag | 3545 | -11 | -0.3% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 12:01am | UK | Rightmove HPI m/m | 3.0% | -0.1% | |
| 8:00am | German | German Buba President Weidmann Speaks | |||
| 10:00am | EU | Trade Balance | 20.3B | 19.7B | |
| 1:30pm | USD | Empire State Manufacturing Index | 5.8 | 3.1 | |
| 2:00pm | EU | ECB President Draghi Speaks | |||
| 2:15pm | US | Capacity Utilization Rate | 78.3% | 78.2% | |
| 2:15pm | US | Industrial Production m/m | 0.2% | -0.3% | |
| 3:00pm | US | NAHB Housing Market Index | 56 | 54 | |
| 9:00pm | US | TIC Long-Term Purchases | 17.6B | ||
The post Gold prices hold up, but risk reduction in the air appeared first on The Bullion Desk.
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