[MARKET ANALYSIS] Gold faces pressure amid a stronger USD, whilst base metals track headwinds from weaker European sentiment
Newsquawk Staff ·
- In the precious metals space, spot gold briefly reclaimed the USD 5,100/oz level after facing pressure yesterday, when reports indicated NBP Governor Glapinski is weighing gold sales for defence funding, which saw the yellow metal fall below the USD 5000/oz mark. A slightly softer dollar and the Iranian conflict boosted haven appeal for gold during the APAC session. However, as the European session gets underway, the yellow metal has slipped below USD 5100/oz due to recent USD strength as the USD continues to be the preferred haven amid ongoing geopolitical tensions. XAU and XAG are trading within the upper half of USD 5066.93-5143.84/oz and 81.80-84.76/oz parameters, respectively.
- Elsewhere in the precious metals space, CME cut COMEX 100 gold futures margins to 7% from 9.0% and COMEX 5,000 silver futures margins to 14% from 18%. Bloomberg, citing a source, also reported this morning that gold is being sold at a discount of as much as USD 30/oz due to elevated shipping and insurance costs.
- Base metals have rebounded from the prior day's trough, largely underpinned by firmer APAC stocks. However, copper prices have seen slight pressure since the European session began, tracking headwind in European equities, thus weighing down the red metal. 3M LME copper trades within the lower range of USD 12.87-12.91k/t.
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