Gold prices fell hard in Asia on Friday as investors
see a slowdown in China manufacturing as ensuring continued easy policy by one
of the world's top yellow metal buyers and as continued to assess the scope for
a Federal Reserve rate hike in September and geopolitical tension appears eased
for now. A session earlier, gold futures plunged more than 1% to close under
$1,100 for the first time in more than five years. Previously, the precious
metal closed lower in every session dating back to July 9. The extended skid
tied a 10-day losing streak in 1996 for the longest slide during the period.
Major reports are still absent today. Positive US data
only helped dollar roll back some losses. Base metals extended losses,
mirroring bearishness in market. In euro zone, Greek approved the second
bailout plan. The Foundation for Economic and Industrial Research (IOBE),
Greece’s leading economic think tank, warned that Greek economy is facing risks
of deep recession. But risk of a Greek exit has decreased a lot, supporting
euro to end up for the first time this week. SHFE 1510 copper contract prices
are expected to move at RMB 37,800-38,800/mt on July 24. Spot copper will be
offered at premiums of RMB 280-300/mt to SHFE 1508 copper contract.
ENERGY
Crude oil prices
gained in Asia, shrugging off poor flash manufacturing estimates on China and
generally bearish news on the supply outlook as investors bet on a rebound
after a series of sharp falls and looked ahead to rig count data in the U.S.
Analysts expected a draw of 2.2 million barrels on the week. Crude inventories
nationwide are now at 463.9 million barrels the highest level at this time of
year in at least 80 years. At the Cushing Oil Hub in Oklahoma, the main
delivery point for NYMEX oil, its crude inventory increased by 813,000 last
week, above expectations for a 300,000 build.
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