The commodity markets were volatile on Tuesday with the industrial metals falling in risk-adverse action, while the precious metals caught a safe-haven bid.
“The precious metals group has been on a tear, with silver at one point tacking on almost $2 in just the two trading sessions, while gold came in very close to breaking its recent high of $1,362.60 set on June 24th,” INTL FCStone analyst Edward Meir said.
Gold for August delivery on the Comex division of the New York Mercantile Exchange closed up $19.70, or 1.5 percent, at $1,358.70 per ounce. Trade ranged from $1,338.50 to $1,360.30 in heavy volumes.
Silver, meanwhile, finished up 31.9 cents at $19.907 per ounce and at one point climbed by nearly 8 percent to $21.225, which was a 22-month high.
“Fuelling these increases, has been continuing talk of bank stimulus. The Bank of England is likely to move first, possibly this summer given that the UK economy is feeling the aftershocks of the vote more acutely than Europe is,” Meir said.
Sterling today fell to a fresh 31-year low – it last traded at 1.306 against the dollar, while in equities the Dow Jones industrial average and S&P 500 were down 0.79 percent and 0.53 percent respectively.
Comex copper for September delivery fell by 3.35 cent to $2.1835 per pound. Trade ranged from $2.1620 to $2.2480.
“[Base metals] today were very choppy and nervous. As the US markets re-opened, equity indices fell and sterling resumed a downwards path as risk buttons were set to the off position again,” Sucden noted.
In data, its factory orders undershot at -1.0 percent. Later this week, the FOMC meeting minutes and Friday’s jobs report will attract attention.
Elsewhere, China’s Caixin PMI data shows the country’s service sector picking up: the reading came in at 52.7, up from 51.2. In Europe, the Spanish, French and German readings for June were all as expected or better. The EU indicator was 52.8 against an expected 52.4.
The post Copper falls while gold, silver rally amid nervy trade appeared first on The Bullion Desk.
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Source: Bullion Desk News
