Metals consolidate, generally holding up well

Mon, 25 Jul - 1:00am

Base
metals closed mixed on Friday with average losses of 0.8 percent, led by a 3.4
percent sell-off in nickel, while copper was off 1.2 percent at $4,922.50 and
lead was down 0.9 percent. Aluminium was up 0.6 percent and zinc was up 0.3
percent. Precious metals were weaker with average losses of 1.1 percent, with
gold prices closing down 0.8 percent at $1,322.15.

This
morning, the base metals are up 0.5 percent on average, led by a 1.1 percent
rise in lead and a one percent rise in nickel, tin is unchanged while the rest are
up between 0.2 and 0.4 percent with copper at $4,933. Volume has been average
with 4,049 lots traded. Precious metals remain under pressure with losses
averaging 0.4 percent, with gold prices at $1,318.

In
Shanghai, lead prices are up 0.9 percent, while the rest of the metals are down
between 0.3 percent for zinc and 2.4 percent for nickel. Spot copper is down
0.8 percent at Rmb 38,000-38,200, the backwardation is at an equivalent of $18
per tonne, while the LME/Shanghai copper arb ratio is 7.72 percent.

In other
metals in China, iron ore prices are up 0.7 percent, steel rebar is up 0.4
percent, while silver is down 0.9 percent and gold prices are off 0.6 percent.
Brent crude prices are off 0.5 percent, last at $45.48.

Equities
were firmer on Friday with the Euro Stoxx 50 up 0.1 percent and the Dow closed
up 0.3 percent. In Asia this morning the markets are mixed with the Nikkei off
0.1 percent, the Hang Seng is off 0.2 percent, the CSI 300 is up 0.1 percent,
the ASX 200 is up 0.6 percent and the Kospi is up 0.1 percent.

In FX,
the dollar index is edging higher, last at 97.38, the euro is weaker at 1.0970,
as is sterling at 1.3125, the yen is consolidating, last at 106.08, as is the
aussie at 0.7481. In emerging markets, the yuan is firmer than of late, last at
6.6788, while other EM currencies are mixed, with the ringgit the main one
showing weakness.

The
economic agenda is light today with Japan’s trade balance, German Ifo business
climate and UK CBI industrial order expectations – see table below for more
details.

The base
metals are for the most part seeing their upward trends consolidate, with most
holding up well, the exception seems to be aluminium that has sold off more
than the others. Copper saw further fresh fund buying and short-covering on
Comex last week, according to CFTC data, so there may well be more room on the
upside, although we expect the market may now wait for next week’s Chinese PMI
data before getting directional again.

The
precious metals are under pressure as gold prices absorb profit-taking,
although silver continues to see fund buying. Generally gold prices are holding
up well as they consolidate which suggests sentiment remains robust. Expect
dips to remain well supported.

 

Overnight Performance   

BST

07:01

+/-

+/- %

Lots

Cu

4933

10.5

0.2%

1330

Al

1618

7

0.4%

321

Ni

10480

105

1.0%

933

Zn

2263.5

8.5

0.4%

1061

Pb

1863

21

1.1%

398

Sn

17755

0

0.0%

6

 

Average

 

0.5%

        4,049

Gold

1317.98

-4.17

-0.3%

 

Silver

19.478

-0.137

-0.7%

 

Platinum

1073.1

-3.9

-0.4%

 

Palladium

676.8

-2.2

-0.3%

 

 

Average PM

 

-0.4%

 

News article attributed to www.bulliondesk.com

 

Base
metals closed mixed on Friday with average losses of 0.8 percent, led
by a 3.4 percent sell-off in nickel, while copper was off 1.2 percent at
$4,922.50 and lead was down 0.9 percent. Aluminium was up 0.6 percent
and zinc was up 0.3 percent. Precious metals were weaker with average
losses of 1.1 percent, with gold prices closing down 0.8 percent at
$1,322.15.

This morning, the base metals are up 0.5 percent on average, led by a
1.1 percent rise in lead and a one percent rise in nickel, tin is
unchanged while the rest are up between 0.2 and 0.4 percent with copper
at $4,933. Volume has been average with 4,049 lots traded. Precious
metals remain under pressure with losses averaging 0.4 percent, with
gold prices at $1,318.

In Shanghai, lead prices are up 0.9 percent, while the rest of the
metals are down between 0.3 percent for zinc and 2.4 percent for nickel.
Spot copper is down 0.8 percent at Rmb 38,000-38,200, the backwardation
is at an equivalent of $18 per tonne, while the LME/Shanghai copper arb
ratio is 7.72 percent.

In other metals in China, iron ore prices are up 0.7 percent, steel
rebar is up 0.4 percent, while silver is down 0.9 percent and gold
prices are off 0.6 percent. Brent crude prices are off 0.5 percent, last
at $45.48.

Equities were firmer on Friday with the Euro Stoxx 50 up 0.1 percent
and the Dow closed up 0.3 percent. In Asia this morning the markets are
mixed with the Nikkei off 0.1 percent, the Hang Seng is off 0.2 percent,
the CSI 300 is up 0.1 percent, the ASX 200 is up 0.6 percent and the
Kospi is up 0.1 percent.

In FX, the dollar index is edging higher, last at 97.38, the euro is
weaker at 1.0970, as is sterling at 1.3125, the yen is consolidating,
last at 106.08, as is the aussie at 0.7481. In emerging markets, the
yuan is firmer than of late, last at 6.6788, while other EM currencies
are mixed, with the ringgit the main one showing weakness.

The economic agenda is light today with Japan’s trade balance, German
Ifo business climate and UK CBI industrial order expectations – see
table below for more details.

The base metals are for the most part seeing their upward trends
consolidate, with most holding up well, the exception seems to be
aluminium that has sold off more than the others. Copper saw further
fresh fund buying and short-covering on Comex last week, according to
CFTC data, so there may well be more room on the upside, although we
expect the market may now wait for next week’s Chinese PMI data before
getting directional again.

The precious metals are under pressure as gold prices absorb
profit-taking, although silver continues to see fund buying. Generally
gold prices are holding up well as they consolidate which suggests
sentiment remains robust. Expect dips to remain well supported.

 

 




Overnight Performance   
BST 07:01 +/- +/- % Lots
Cu 4933 10.5 0.2% 1330
Al 1618 7 0.4% 321
Ni 10480 105 1.0% 933
Zn 2263.5 8.5 0.4% 1061
Pb 1863 21 1.1% 398
Sn 17755 0 0.0% 6
  Average   0.5%         4,049
Gold 1317.98 -4.17 -0.3%  
Silver 19.478 -0.137 -0.7%  
Platinum 1073.1 -3.9 -0.4%  
Palladium 676.8 -2.2 -0.3%  
  Average PM   -0.4%  

- See more at:
https://www.bulliondesk.com/gold-news/metals-morning-view-metals-consolidate-generally-holding-up-well-117628/#sthash.aPbrs5ym.dpuf

Contact Us

Due to the security nature of our business, personal meetings are only by pre-arranged appointment.
Phone at any time on

1300 987 995

or for International Enquiries on +61 2 9969 3076
info@ausmint.com