Palladium prices bounce from oversold levels, gold price consolidates

Date Jul 02 2015 08:59:37

Precious metals had a volatile day – at the day’s lows they were down 0.9 percent on average, with silver off 1.7 percent at one stage, while they ended the day mixed with palladium up 0.9 percent, while gold, silver and platinum prices closed down 0.5 percent, with gold at $1,173.50.


Many of the base metals spiked lower on Tuesday; at the day’s lows prices were down an average of 3.9 percent, skewed by an 8.5 percent drop in nickel and a 6.9 percent drop in tin. The sell-offs turned into spikes with the complex closing down an average of 0.6 percent, with nickel closing the day up 1.8 percent, while tin closed off 3.3 percent. We thought the SHFE’s decision to make Norilsk nickel brands good for delivery for against SHFE nickel contracts was going to be bullish for LME nickel, while bearish for SHFE prices, it seems the sell-off in SHFE yesterday dragged LME nickel down too, before reality set in.


This morning the base metals are generally little changed with nickel the exception as is off 0.5 percent having rebounded strongly yesterday, the rest of the complex are either side of unchanged with copper at $5,764.50 and volume has reverted back to low levels with 2,408 lots traded as of 06.07 BST.


Chinese PMI data already out shows a slight deterioration from the flash readings, with the official reading unchanged at 50.2, but that was below an expected 50.5, while the HSBC reading was 49.4 after a flash reading of 49.6 – it was up from 49.2 in May. Japan’s tankan data was stronger and its manufacturing PMI improved to 50.1, from a flash reading of 49.9.


The precious metals prices are stronger this morning, led by palladium that is up 4.1 percent to $698.80, platinum is up 0.9 percent, gold and silver bullion prices are up an average of 0.2 percent with the gold price last at $1,174.10.