Volume has been strong with 14,946 lots traded as of 07:38 BST.
This follows a generally stronger day on Friday when prices
closed up an average of 1%.
Gold and the other precious metals are firmer this morning with
prices up an average of 0.3%, led by a 0.5% rebound in platinum
prices, while gold price are up 0.1% at $1,230.08 per oz, this
after a strong performance on Friday when the complex closed up
an average of 1%.
On the Shanghai Futures Exchange (SHFE), the base metals prices
are up an average of 1.4%, led by a 4% rally in nickel prices,
while copper prices are up 1% at 47,630 yuan ($7,032) per
tonne, spot copper prices in Changjiang are up 0.9% at
47,230-47,430 yuan per tonne and the LME/Shanghai copper arb
ratio is weaker at 7.96.
In other metals in China, September iron ore prices on the
Dalian Commodity Exchange are up 3.2% at 495 yuan per tonne,
while on the SHFE, steel rebar prices are up 2.1%, silver
prices are up 1.8% and gold prices are 0.8% firmer.
In international markets, spot Brent crude oil prices are
little changed at $48.99 per barrel and the yield on the US
ten-year treasuries has eased to 2.33%, while the German
ten-year bund yield is stronger at 0.59%.
Equities were split on Friday with the Euro Stoxx 50 closing
off up 0.1% but the Dow closed up 0.4% at 21,637.74. In Asia
this morning, the Nikkei up 0.1%, the Hang Seng is up 0.3% and
the Kospi is up 0.4%, while the CSI 300 and ASX 200 are down
1.2% and 0.2%, respectively.
The dollar index at 95.25 is continuing to weaken, while the
euro remains upbeat at 1.1453, as are sterling at 1.3095 and
the Australian dollar at 0.7809 and the yen is firmer at
The yuan is looking stronger again at 6.7722, as are most of
the emerging market currencies we follow, especially the real,
rand and peso.
Data out already shows better-than-expected data out of China
with gross domestic product (GDP) holding up at 6.9%,
industrial production rising 7.6%, retail sales rising 11% and
fixed asset investment unchanged at 8.6%. Later there is data
on EU CPI and US Empire State manufacturing index.
Copper and nickel prices have taken over from zinc as the
metals leading on the upside, but all are looking brighter and
well placed to rally, helped by stronger Chinese data and the
weaker dollar. Overall, we remain quietly bullish for the base
Gold prices have firmed up in recent days, this despite
geopolitical concerns being light but the weaker dollar and a
less hawkish US Federal Reserve seem to be underpinning price
rises. All in all, we are not expecting much from the precious
metals camp in the short term, but we expect dips to remain
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