Bullion prices firmer after a mixed day yesterday

Dec 4, 2014 - 7:49 AM GMT
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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
GMT 06:48 +/- +/- % Lots
Cu 6446.25 68.75 1.1% 3910
Al 1979.5 6.5 0.3% 967
Ni 16889 299 1.8% 1141
Zn 2233.5 19.5 0.9% 1274
Pb 2034 7.75 0.4% 276
Sn 20487 72 0.4% 45
Steel 450 0 0.0% Total
Average (BM ex-Steel) 0.8% 7,613
Gold 1206.2 -1.8 -0.1%
Silver 16.42 0.04 0.2%
Platinum 1225.2 4.2 0.3%
Palladium 798 5 0.6%
Average PM   0.3%  

 

SHFE 07:10 GMT Today Change % Change
Cu 45800 490 1.1%
AL 13485 85 0.6%
Zn 16665 175 1.1%
Pb 13510 15 0.1%
Average change (base metals)     0.7%
Rebar 2573 32 1.3%
Au 239.85 1.1 0.5%
Ag 3480 14 0.4%

 

    Economic Agenda      
GMT Country Data ACTUAL Expected Previous
12:30am US FOMC Member Fisher Speaks
 8:00am UK Halifax HPI m/m 0.2% -0.4%
9:10am EU Retail PMI 47
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 Unemployment Claims 296K 313K
1:30pm US FOMC Member Mester Speaks
3:30pm US Natural Gas Storage -51B -162B
5:30pm US FOMC Member Brainard Speaks