Precious metals were mixed yesterday with the gold price up 0.9 percent at $1,208, platinum up 0.5 percent at $1,221, while silver was off 0.2 percent at $16.38 and palladium was off one percent at a price of $793. Consolidation near the top of the recent rebound levels bodes well, especially with the dollar as strong as it is.
Bullion prices are firmer with gold up 0.5 percent at Rmb 239.85 and the silver price up 0.4 percent at Rmb 3,480.
Equities were steady yesterday with the Euro Stoxx 50 up 0.3 percent and the Dow up 0.2 percent. Asia has followed suit with the Nikkei up 0.9 percent, the Hang Seng up 1.6 percent, the CSI 300 up a massive 4.4 percent and the Kospi up 0.9 percent.
Currencies – the dollar index has climbed to a new multi-year high of 89.03, the euro is weaker ahead of the ECB rate setting meeting and press conference, it is last at 1.2299, sterling is treading water around 1.5675, but the yen, aussie and yuan are weaker at 119.96, 0.8367 and 6.1536.
The economic agenda is busy with the focus on ECB and Bank of England interest rate decisions and policy statements, plus there are French and Spanish bond auctions and data on EU retail PMI, US Challenger job cuts and initial jobless claims. FOMC members Loretta Mester and Lael Brainard are speaking – see table below for more details.
Precious metals continue to consolidate Monday’s gains, the PGMs looked well placed to push higher but they have pulled back slightly so seem in no hurry to climb. Bullion prices likewise seem capped for now, which is not surprising given the stronger dollar. The dollar’s up trend looks robust, but somewhat overbought, any correction could give metals a boost.
|Overnight Performance – London|
|Average (BM ex-Steel)||0.8%||7,613|
|SHFE 07:10 GMT||Today||Change||% Change|
|Average change (base metals)||0.7%|
|12:30am||US||FOMC Member Fisher Speaks|
|8:00am||UK||Halifax HPI m/m||0.2%||-0.4%|
|Tentative||EU||Spanish 10-y Bond Auction||2.12|3.0|
|Tentative||EU||French 10-y Bond Auction||1.18|1.4|
|12:00pm||UK||Official Bank Rate||0.5%||0.5%|
|12:00pm||UK||Asset Purchase Facility||375B||375B|
|Tentative||UK||MPC Rate Statement|
|12:30pm||US||Challenger Job Cuts y/y||0.119|
|12:45pm||EU||Minimum Bid Rate||0.1%||0.1%|
|1:30pm||EU||ECB Press Conference|
|1:30pm||US||FOMC Member Mester Speaks|
|3:30pm||US||Natural Gas Storage||-51B||-162B|
|5:30pm||US||FOMC Member Brainard Speaks|