Gold prices failed to push higher after the People’s Bank of China (PBoC) cut the yuan for the third straight day.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell $9.00 or 0.8 percent to $1,114.60 per ounce. Trade has ranged to $1,113.60 to $1,126.30.
Earlier today, the PBoC announced that there would be no further depreciation of the currency after cutting the yuan by 1.1 percent – the third consecutive devaluation after a combined 3.5 cut the previous two days.
The cut is the largest against the dollar since 1994 and is aimed at stabalising falling exports and equity markets that has seen rapid movements in past weeks.
The Shanghai Composite Index finally responded by rising 1.76 percent to 3,954.56, while the yuan stood at 6.3989.
“The PBOC today attempted to reassure the markets around the world that the recent activity was very likely “one-off” and that there was no further basis for a continued devaluation of the Renminbi,” Dennis Gartman, editor and publisher of The Gartman Letter, said.
Turning to fundamentals, the World Gold Council (WGC) released a new report showing that global gold demand fell by 12 percent to 914.9 tonnes in the second quarter compared to the previous year.
In Europe, the German final CPI came in as expected, rising 0.2 percent, as did the French CPI, with its forecast 0.4 percent decline. US data scheduled for release later today includes retail sales, initial weekly jobless claims, import prices, business inventories and natural gas storage.
Meanwhile in the US, core retail sales month-over-month in July were in-line with forecasts at 0.4 percent, while retail sales month-on-month in July matched the consensus at 0.6 percent.
US weekly unemployment claims were 274,000, near the prediction of 272,000 and the previous reading of 270,000.
Additionally, import prices month-over-month in July were down 0.9 percent, below the estimate of one percent.
Turning to wider markets, Germany’s DAX and France’s CAC-40 were up 1.8 percent and 1.9 percent respectively, while the euro was 0.5 percent weaker at $1.110 against the dollar.
As for other precious metals, Comex Silver for September settlement fell 14.1 cents to $15.335 per ounce. Trade has ranged from $15.265 to $15.555.
Platinum for October delivery declined $8.90 to $991.0 per ounce, while the most actively traded palladium contract was at $618.70, down $4.40.
(Editing by Tom Jennemann)
The post Third consecutive yuan devaluation fails to spark gold appeared first on The Bullion Desk.
No comments:
Post a Comment