Precious metals prices are down around 0.5% this morning, January 27, with spot gold prices at $1,182.10 per oz, which follows losses averaging 1.2% yesterday when palladium prices fell 1.8% to $722 per oz and gold prices closed 1% lower at $1,188.25 per oz. Strong equity markets and no major shocks yet from the new US administration seem to be weighing on precious metals prices.
Base metals are for the most part firmer this morning January 27, with LME prices up an average of 0.3% led by a 1% gain in nickel prices to $9,440 per tonne. Copper is the metal bucking the trend with a 0.2% decline in prices to $5,837 per tonne.
Volumes have been noticeably light due to the start of the Chinese Lunar New Year holiday, with just 1,253 lots traded, compared with an average at around this time of day last week of 8,060 lots.
The firmer tone follows yesterday’s weakness when the base metals prices closed down an average of 2.2% on a day that saw nickel price slump 4% and lead prices off 3.2%.
In international markets, the spot Brent crude oil price is little changed at 56.14 per barrel.
Equities were mixed yesterday, with the Euro Stoxx 50 closing down 0.2% but the Dow ending up 0.2% at 20,100. This morning most of Asia is closed for the start of the Chinese Lunar New Year holidays. The Nikkei is up 0.3% and the ASX 200 is up 0.8%.
In FX, the dollar turned higher yesterday and it is further gaining ground this morning with the dollar index recently quoted at 100.74, after a recent low of 99.79. The dollar’s strength has brought downward pressure on other currencies, with the euro weaker at 1.0667, the yen at 115.10, the aussie at 0.7527 and sterling at 1.2547. Emerging market currencies are also weaker.
The economic agenda is fairly busy, Japan’s core CPI climbed 0.1% in December, slightly weaker than the 0.2% seen in November. There is money supply and private loans data out of the EU, plus there is an EcoFin meeting today, while US data includes advanced GDP and GDP prices, durable goods orders and revised University of Michigan consumer sentiment and inflation expectations – see table below.
The weaker tone in the base metals yesterday is of little surprise as there was likely to be some adjustment ahead of the Chinese Lunar New Year holiday, especially given the general show of strength in recent days/weeks. That said, nickel prices have been showing weakness since December 19, so it is trading its own fundamentals that have been weakened by developments in Indonesia over the allowing of nickel ore exports. Tin prices have also been weaker, again due to a belief that politicians have changed Chinese export rules on refined tin, although this has yet to be confirmed. Tin stocks have also been rising. The rest of the metals now seem to be consolidating recent gains and a stronger dollar and thinner trading volumes due to the Chinese New Year holiday may well lead to some choppier trading.
Precious metals prices are in retreat, stronger equity prices and a lack, so far, of geopolitical stress are weighing on prices, as is the stronger dollar. However, there is still room for a pick-up in geopolitical tension and the standoff between the Trump administration and Mexico may be the start of that. We should get a feel for how bullish underlying sentiment is for gold, by seeing how far prices fall before they find solid support. We expect dips to be well supported.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FastMarkets.com
mailto:press@fastmarkets.com
8 Bouverie Street, London, EC4Y 8AX, UK
+44 (0)845 241 9949
TERMS AND CONDITIONS
The Terms and Conditions for this service are here.
REPRESENTATIONS AND LIABILITY
1.Fastmarkets represents that: i.It will supply the Services in a professional way, using the care that can be reasonably expected for this type of business, and in accordance with the practices and policies which are commonly applicable in the information services industry.
ii.it is duly empowered to supply the Information and Service(s) to the Client for the purposes specified in this Agreement and that the Service(s) and its use by the Client as specified in this Agreement will not infringe any intellectual property rights of any third party.
2.Although Fastmarkets will use all reasonable endeavours to ensure the accuracy and reliability of the Services, neither Fastmarkets, the Data Sources, or any third-party provider will be liable to the Client (or any third party) for direct, indirect or consequential loss or damage, including but not limited to loss of data, trading or other economic losses, arising out of any reliance on the accuracy of the Information (including but not limited to data, news and opinions) contained in the Service(s) or resulting in any way from the supply (or failure of supply) of the Services. However, Fastmarkets accepts liability for physical loss or damage to the Site caused by its negligence or wilful misconduct.
3.Except as expressly stated in this agreement, all express or implied conditions, warranties or undertakings, whether oral or in writing, in law or in fact, including warranties as to satisfactory quality and fitness for a particular purpose, are excluded.
4.The Client will indemnify Fastmarkets against any loss, damage or cost in connection with any claim or action that may be brought by any third party against Fastmarkets relating to any misuse of the Services by the Client.
5.To the extent permitted by law, under no circumstances will Fastmarkets liability under this Agreement exceed the Service Fees paid to Fastmarkets by the Client, regardless of the cause or form of action.
PRIVACY POLICY
The Fastmarkets Ltd Privacy Policy is here.
The post Gold prices consolidate after yesterday’s weakness appeared first on The Bullion Desk.
from The Bullion Desk http://ift.tt/2jXX0nt
via IFTTT
Комментариев нет:
Отправить комментарий