Gold retreats to hit a 5-year low

Monday, July 20, 2015

Precious metal prices remain in negative territory in early trade this morning. Gold retreated sharply to a 5-year low at $1086/ounce early in the session. The yellow precious metal has slightly rebounded and hovered around $1100/ounce while silver followed the downtrend and slid lower towards $14.70. Platinum and palladium also posted heavy losses in early trade. Investors’ concerns regarding a possible imminent US interest rate rise weigh on market sentiment, prompting sell-off across most commodity prices. Copper has remained under pressure this morning, trading around $5470 while aluminium held around the $1700 area.

XAU- Gold plunges to a 5-year low

XAU Curncy (Gold Spot   $_Oz )  D 2015-07-20 09-04-29 

The Rightmove House prices survey showed UK house prices increased 0.1% m/m in July, compared to a previous increase of 3.0% in June. The y/y figure surged 5.1% in July compared to 4.9% in June. The London equity benchmark index opened higher this morning and climbed towards 6,800. Germany’s PPI fell by 0.1% in June in-line with expectations. The CAC, DAX, IBEX and Italian equity benchmark indices posted renewed gains in early trade this morning. The euro hovered around 1.0850 against the USD, looking for signs of upside momentum after three consecutive sessions of sharp losses. 

In Asia, the Hang Seng index held in positive territory after trading around 25,430 (+0.10%), while the Nikkei index edged higher to retest 20,650. Chinese New Yuan loans increased to 1.279 bln in June from 900.88 mln in May, beating analysts’ expectations. The Shanghai Composite index extended gains for a third consecutive session and climbed towards 4,000 after gaining over 0.85% overnight.

Due to a lack of major macroeconomic data, the main focus will switch to currency movements for direction. The strong USD rally seems to have paused for a while as the USD index initially climbed higher to retest 98.0 this morning but reversed and slid slightly lower towards 97.80 against a basket of currencies. Market participants will be keeping an eye on the release of IBM’s earning results for Q2 2015.

 

Events for today:

0001

UK

Jul

Rightmove House Prices

0700

DE

Jun

PPI

 

All times UK Local Time

 

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