Gold bullion closed little changed at $1,117.50, platinum was off 0.3 percent, while silver and palladium were down close to three percent. The base metals sold off again yesterday with copper and aluminium setting fresh lows, with copper breaking below $5,000 to set a low at $4,983 and aluminium reaching $1,549.50. On average, the complex was off 2.1 percent.
This morning the base metals lie between being little changed or higher, with nickel up 0.7 percent at $10,425, aluminium is up 0.3 percent and zinc is up 0.2 percent, while the rest are little changed with copper at $5,014.50, Volume has picked-up to 4,360 lots – see table below.
Precious metals this morning sees gold bullion prices little changed at $1,118, silver up 0.1 percent, while the PGMs are weaker by an average of around 0.7 percent.
In Shanghai, the base metals are off across the board with average losses of one percent, led by a 1.5 percent drop in nickel, copper is off 1.2 percent at Rmb 38,510, zinc is off 1.1 percent, lead is off 0.9 percent, aluminium is down 0.8 percent and tin is off 0.3 percent. Spot copper is down 1.2 percent, the backwardation with the October contract is at around an equivalent of $45 per tonne and the LME/Shanghai copper arb ratio is wider at 7.89 for nearby months, which should lend some support LME prices.
In other metals prices in Shanghai, gold is off 0.1 percent, silver is down 1.8 percent, steel rebar is down 1.1 percent and iron ore prices are steady at $56.90.
Equities were slightly weaker yesterday with the Euro Stoxx 50 off 0.1 percent and the Dow closed down 0.2 percent. Asia has generally been weak with the Nikkei down 1.5 percent, the Hang Seng is off 1.1 percent, China’s CSI initially saw follow through weakness after yesterday’s 6 percent drop, but later recovered strongly and the Kospi is down 0.9 percent.
Currencies – the dollar is treading water with the dollar index at 96.80, as are the euro at 1.1060, the aussie at 0.7340 and the yen at 124.27, sterling is firm at 1.5672, the rouble is weak at 65.72 and the yuan is flat at 6.4394. The emerging market currencies are starting to consolidate, but in low ground after their post-Chinese devaluation weakness.
Economic data already out shows Japan’s trade deficit widened as exports slowed, while its all industries activity index climbed 0.3 percent. Later we get the EU current account, US CPI and crude oil inventories and then at 7:00pm BST we get the FOMC Meeting minutes (N.B. the minutes were for a meeting held before China’s devaluation).
The downward trends continue for most of the base metals, the exceptions are tin that is trying to work higher and lead that is once again just managing to stay flat. For now, the downward momentum looks set to push prices lower, but there remains increased risk of short-covering rallies along the way.
Gold bullion prices are managing to hold up, as are platinum prices, while silver and palladium are struggling. Gold seems to be attracting safe-haven buying as concerns about emerging market currencies and broader markets seem to be on the rise.
| Overnight Performance | ||||
| BST | 06:50:06 | +/- | +/- % | Lots |
| Cu | 5014.5 | -5.5 | -0.1% | 2510 |
| Al | 1555 | 4 | 0.3% | 392 |
| Ni | 10425 | 75 | 0.7% | 474 |
| Zn | 1770 | 3.5 | 0.2% | 864 |
| Pb | 1685 | 0.5 | 0.0% | 115 |
| Sn | 15155 | -5 | 0.0% | 5 |
| Steel | 300 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | 0.2% | 4360 | ||
| Gold | 1118 | 0.5 | 0.0% | |
| Silver | 14.87 | 0.02 | 0.1% | |
| Platinum | 986.8 | -5.2 | -0.5% | |
| Palladium | 590.2 | -4.8 | -0.8% | |
| Average PM | -0.3% | |||
| SHFE Prices 6:50 BST | Change | % Change | |
| Cu | 38510 | -460 | -1.2% |
| AL | 11920 | -100 | -0.8% |
| Zn | 14630 | -160 | -1.1% |
| Pb | 13200 | -115 | -0.9% |
| Ni | 81250 | -1220 | -1.5% |
| Sn | 106890 | -350 | -0.3% |
| Average change (base metals) | 236.5 | -1.0% | |
| Rebar | 2035 | -23 | -1.1% |
| Au | 232.45 | -0.3 | -0.1% |
| Ag | 3396 | -63 | -1.8% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 12:50am | Japan | Trade Balance | -0.37T | -0.16T | -0.28T |
| 5:30am | Japan | All Industries Activity m/m | 0.3% | 0.4% | -0.5% |
| 9:00am | EU | Current Account | 19.2B | 18.0B | |
| 1:30pm | US | CPI m/m | 0.2% | 0.3% | |
| 1:30pm | US | Core CPI m/m | 0.2% | 0.2% | |
| 3:30pm | US | Crude Oil Inventories | -0.6M | -1.7M | |
| 7:00pm | US | FOMC Meeting Minutes | |||
The post Is gold’s steadiness now a warning about other markets? appeared first on The Bullion Desk.
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