A muted session was seen in precious as well as base metals markets with both gold and copper remaining within tight trading ranges throughout Tuesday’s session. Gold did see some downside, ensuring that it heads towards the end of the session in the red, as USD strength weighed on the metal, following USD/JPY breaking above 100.00 for the first time since early June. Meanwhile, SPDR Gold Trust, the world’s largest gold exchange-traded fund again reported increased outflows of gold, meaning its holdings are now at a low not seen since February 2009. In copper markets, whilst the base metal does trade with minor losses, it remains underpinned by its continued use as collateral by borrowers in China, despite the apparent improvements in the country’s liquidity squeeze in recent days. Looking ahead, market focus will remain on the key risk events scheduled for this week, with policy decisions from both the BoE and the ECB on Thursday and the key non-farm payrolls report on Friday.
02 Jul 2013 - 21:37 - Metals - Source: RANsquawk
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