SP Angel - Economics / Mining - Metals advance on further Yuan devaluatio - Research | Betts Metal Investments
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SP Angel - Economics / Mining - Metals advance on further Yuan devaluatio

Gold prices rose a smidgen as China’s central bank devalues the Yuan yet again

  • The move reflects funds being parked in gold in preference to paper currencies as the PBoC action creates greater uncertainty for investors and industry
  • We would expect investors and traders to park money in gold in case the PBoC move causes other currencies in the region to devalue
  • The PBoC move may also serve to delay the US Fed’s intention to raise US interest rates in September – and this is mentioned in dispatches by PBoC commentators
  • The US Fed reckon their rate rise will be so small as not to have much impact but that the period of ultra-low rates must come to an end

 

Precious metals:

Gold US$1,118/oz vs US$1,117/oz yesterday – Below we repeat the words of the World Gold Council latest report

We believe gold demand has picked up in Q3 with new investment demand apparent this week as China devalues its currency

Gold Demand Trends Q2 ’15:

http://www.gold.org/supply-and-demand/gold-demand-trends

  • Gold demand dropped 12% to a six-year low of 914.9 tonnes in a challenging quarter. Despite pockets of strength, demand was down in all sectors.
  • Supply declined by 5% year-on-year.
  • Consumer demand falls in India and China. These markets accounted for almost half the fall in global demand.
  • Eurozone issues bolster local investment. Investors in Europe focussed on issues close to home as the Greek crisis dominated the headlines.
  • Facing forward: H2 outlook. Prospects for the remainder of the year are more encouraging, with consumers responding to the recent price drop.
  • On a half-yearly basis, the year-on-year decline in global gold demand was a more modest 6%

Platinum US$992/oz vs US$991/oz

Palladium US$619/oz vs US$606/oz

Silver US$15.39/oz vs US$15.35/oz

 

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