Precious metals evenly grouped – gold price looks well placed

Feb 26, 2015 - 7:13 AM GMT
by

Yesterday the precious metals were more buoyant, the complex closed up 0.8 percent with palladium doing a lot of the lifting, it was up 1.9 percent, closing above $800 at $806 and silver climbed 0.9 percent in price to $16.53.

Precious metals are up an average of 0.5 percent and are fairly evenly grouped with the gold price and palladium price up 0.4 percent, at $1,210.40 and $809.60 respectively, platinum is up 0.5 percent and silver is up 0.7 percent.

Precious metals were little changed with the gold price at Rmb 244.05/g and silver at Rmb 3,571/kg.

Equities – consolidated yesterday with the Euro Stoxx 50 off 0.2 percent and the Dow up 0.1 percent, but the mood is Asia is more upbeat with the Nikkei up 1.1 percent, the Hang Seng is up 0.9 percent, the CSI 300 is up 1.7 percent and the Kospi is up 0.1 percent. Hopes for further monetary easing in China helped underpin equities and firmer oil prices were a double edged sword in that it showed some optimism for demand, while at the same time reducing the benefit lower oil prices have on the wider economy.

Currencies – the dollar is easier with the index at 94.20, the euro is firmer at 1.1364, sterling is strong at 1.5540 and seems to have embarked on a steady uptrend, the yen is flat at 118.96, the aussie if off yesterday’s highs, last at 0.7852, the yuan is weak at 6.2600, while the rouble is liking the firmer oil, last at 61.16. The rand is also firmer at 11.43 – the weaker rand has been offsetting weak platinum prices for local producers.

The data agenda is busy with German GfK consumer climate and unemployment change, EU money supply and private loans, Italian retail sales, UK GDP, business investment and index of services, US CPI, initial jobless claims, durable goods orders, HPI and natural gas storage. In addition, UK’s MPC member Dr Nemat Shafik and FOMC member Dennis Lockhart are speaking – see table below for more details.

Precious metals across the board are firmer with gold, silver and platinum attempting to rebound, while palladium has cleared resistance at $800 and is striding out towards resistance at $823. If gold has put a base in, having fallen $117 from the January high, any rally might have legs.

 

Overnight Performance      
GMT 06:06 +/- +/- % Lots
Cu 5824 20.5 0.4% 2076
Al 1804 4 0.2% 503
Ni 14375 70 0.5% 241
Zn 2078.5 18 0.9% 1704
Pb 1758 6 0.3% 338
Sn 18135 10 0.1% 10
Steel 315 0 0.0% Total
Average (BM ex-Steel) 0.4% 4,872
Gold 1210.4 5.2 0.4%
Silver 16.64 0.11 0.7%
Platinum 1176.3 6.3 0.5%
Palladium 809.6 3.6 0.4%
Average PM 0.5%

 

SHFE 06:16 GMT Today Change % Change
Cu 42520 430 1.0%
AL 12975 -35 -0.3%
Zn 16095 25 0.2%
Pb 12255 -50 -0.4%
Average change (base metals) 0.1%
Rebar 2420 6 0.2%
Au 244.05 -0.25 -0.1%
Ag 3571 5 0.1%

 

    Economic Agenda      
GMT Country Data ACTUAL Expected Previous
7:00am Germany GfK German Consumer Climate 9.6 9.3
8:55am Germany German Unemployment Change -10K -9K
9:00am EU M3 Money Supply y/y 3.7% 3.6%
9:00am EU Private Loans y/y -0.3% -0.5%
9:00am Italian Italian Retail Sales m/m 0.0% 0.1%
9:30am UK Second Estimate GDP q/q 0.5% 0.5%
9:30am UK Prelim Business Investment q/q 2.0% -1.4%
9:30am UK Index of Services 3m/3m 0.7% 0.8%
Tentative Italy Italian 10-y Bond Auction 1.62|1.4
1:30pm US CPI m/m -0.6% -0.4%
1:30pm US Core CPI m/m 0.1% 0.0%
1:30pm US Unemployment Claims 288K 283K
1:30pm US Core Durable Goods Orders m/m 0.6% -0.8%
1:30pm US Durable Goods Orders m/m 1.7% -3.3%
2:00pm US HPI m/m 0.5% 0.8%
3:30pm US Natural Gas Storage -241B -111B
5:30pm UK MPC Member Shafik Speaks
6:00pm US FOMC Member Lockhart Speaks