China’s GDP was reportedly up 7% in the second quarter, higher than the 6.8% forecast. LME copper price tested a low of USD 5,515/mt before ending at USD 5,585/mt. SHFE 1509 copper contract may trade at RMB 40,100-40,800/mt on July 15. Spot copper will be offered at discounts of RMB 100-200/mt to SHFE 1507 copper contract. Base metals prices rose across the board on improving market sentiment. Greece accepted a batch of reforms, meaning it will not exit the euro zone. US retail sales were sluggish, weighing on the US dollar index. China’s Q2 growth and fixed asset investment in H1 slated for release today are not promising, leaving investors cautious. 

Crude oil prices gained in Asia on Wednesday as U.S. industry data showed a sharp stocks draw last week and the market looks ahead to GDP data from China. China is expected to report GDP gained at a 6.9% pace in the second quarter year-on-year, or a 1.7% quarterly clip. As well, industrial out likely rose 6.0% in June year-on-year, while retail sales jumped 10.2% in the same month.  An outflow of Iranian oil could depress crude prices in a market already saturated by a glut of oversupply. Traders’ are waiting for inventory data.

CS GOLD (AUGUST) OVERVIEW:

TREND MIXED TO BEARISH
RESIST 2: 26160
RESIST 1: 26115
SUP 1: 25870
SUP 2: 25730
STRATEGY: SELL ON RISE

CS SILVER (JULY) OVERVIEW:

TREND MIXED TO BEARISH
RESIST 2:35630
RESIST 1:35440
SUP1:34995
SUP2:34585
STRATEGY : SELL ON RISE