Precious metals dropped an average of 0.9 percent yesterday as dollar strength weighed on prices and kept them near lows with gold closing at $1,145 having been as low as $1,142.70, just breaching the March low of $1,142.90.
Base metals were mixed yesterday with average gains of 0.3 percent, lead fell 1.6 percent to $1,834.50, zinc was off 0.6 percent, while tin was up 2.7 percent, nickel was up one percent and copper was little changed at $5,545.0.
This morning the metals are little changed, with copper up 0.5 percent at $5,571 and nickel off 0.5 percent, while the rest are between unchanged and up 0.3 percent. The most notably feature is that volume is extremely low with just 1,326 lots traded. Nickel is still trading more than aluminium, with 457 lots traded, while only 599 lots of copper have traded as of 06:25 BST. see table below for more details.
Precious metals are little changed with gold at $1,144.60 having been as low as $1,143.80.
In Shanghai, the base metals are for the most part weaker, with aluminium, zinc, lead and nickel all lower, while tin is up 0.7 percent and copper is up slightly at Rmb 40,450. Spot copper in Changjiang is off 0.1 percent at Rmb 40,950-41,050, while the LME/Shanghai copper arb ratio is 7.43, which should mean the arb window is open to some traders.
Precious metals are little changed in Shanghai with gold and silver off 0.1 percent. Iron ore prices are flat at around the $50 level and steel rebar in Shanghai was off 0.1 percent.
Equities put in a strong performance yesterday with the euro Stoxx 50 up 1.5 percent and the Dow closed up 0.4 percent. China this morning is stronger with gains of 2.4 percent, the Nikkei is up 0.2 percent, the Hang Seng is up 1.2 percent and the Kospi is off 0.6 percent.
Currencies – the dollar index is strong at 97.59, the euro is weak at 1.0884, sterling is firm as the Bank of England Governor Mark carney was talking about a possible rate rise this year, while other currencies are weaker with the yen at 124.04, the aussie is at 0.7410, the yuan is flat at 6.2090 and the rouble is at 56.51.
The economic agenda is focused on US data with housing starts, building permits, CPI, University of Michigan consumer sentiment and inflation expectations. In addition, FOMC member Stanley Fischer is speaking – see table below.
The base metals are holding up relatively well after their rebounds from last week’s downward spikes. Tin is the exception with prices overcoming $15,000. The metals look well placed to extend gains, but the strong dollar may make the upside going difficult. With volumes as low as they are, trading may be quite choppy.
Gold is on the rocks, it breached the March low yesterday and the multi-year low from November is at $1,131.60. Rebounds continue to be feeble and sentiment is washed out. Silver is following gold, while the PGMs have continued lower, ignoring the better European vehicle registration data from yesterday. That said, the Rhodium price has climbed strongly in recent days – rising from around $775 on July 8 to $1,000 yesterday.
| Overnight Performance | ||||
| BST | 06:25 | +/- | +/- % | Lots |
| Cu | 5571 | 25.5 | 0.5% | 599 |
| Al | 1713 | 0 | 0.0% | 74 |
| Ni | 11525 | -55 | -0.5% | 457 |
| Zn | 2070 | 1 | 0.0% | 116 |
| Pb | 1837 | 2.5 | 0.1% | 66 |
| Sn | 15100 | 50 | 0.3% | 14 |
| Steel | 300 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | 0.1% | 1,326 | ||
| Gold | 1144.6 | -0.4 | 0.0% | |
| Silver | 15.01 | 0.01 | 0.1% | |
| Platinum | 1006.2 | -1.8 | -0.2% | |
| Palladium | 628.3 | 0.3 | 0.0% | |
| Average PM | 0.0% | |||
| SHFE Prices 06:38 BST | Change | % Change | |
| Cu | 40450 | 20 | 0.0% |
| AL | 12480 | -25 | -0.2% |
| Zn | 15625 | -70 | -0.4% |
| Pb | 13105 | -25 | -0.2% |
| Ni | 84900 | -320 | -0.4% |
| Sn | 109810 | 780 | 0.7% |
| Average change (base metals) | 236.5 | -0.1% | |
| Rebar | 2055 | -2 | -0.1% |
| Au | 231.3 | -0.25 | -0.1% |
| Ag | 2034 | 0 | 0.0% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 1:30pm | US | Building Permits | 1.11M | 1.25M | |
| 1:30pm | US | CPI m/m | 0.3% | 0.4% | |
| 1:30pm | US | Core CPI m/m | 0.2% | 0.1% | |
| 1:30pm | US | Housing Starts | 1.10M | 1.04M | |
| 3:00pm | US | Prelim UoM Consumer Sentiment | 96 | 96.1 | |
| 3:00pm | US | FOMC Member Fischer Speaks | |||
| 3:00pm | US | Prelim UoM Inflation Expectations | 2.7% | ||
The post Rhodium price rallies, while gold and the others precious metals flounder appeared first on The Bullion Desk.
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