Gold's Rally may not have Ended as Suggested by US Yields
Gold changes little in European session. While price has recovered in tandem with broad-based strength in the commodity market, liquidation from previous long positions and re-allocation of capitals to stock markets capped gold's upside. While investment demand for gold recedes as risk appetite improves, physical demand has picked up as price declines from its peak. Despite a small number compared with that in 2008 (full year imports in 2008: 165.9 metric tons), Turkey, the world's third-largest gold consumer, is reported to have imported 19.93 metric tons of gold bullion in July, up +39% from 14.32 metric tons the same period in 2009. Apart from the lucrative double-digit growth, July's imports marked a significant improvement of gold demand from the first half of the year. Monthly imports from January to June averaged less than 1 metric ton a month!
Read the rest here ......Crude Jumped to a 3-month High as Eco Data Beat Expectations, Equities Surged
Crude oil's rally accelerated after breaking above the resistance level at 80. The front-month WTI contract rallied +3.02% to a 3-month high of 81.34. Better-than-expected PMIs in the US and Europe, weakness in USD and news of a tropical depression forming in the Atlantic were forces driving price higher. Risk appetite improved as earning results from banks were generally strong. Wall Street and European bourses jumped as led by banking and commodity sectors.
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