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Metals Rally on Export Data from China & Germany

August 8, 2013 at 20:25 by Vladimir Vyun

Precious and industrial metals rallied today as exports rose both in China and Germany. Chinese exports increased 5.1 percent in July from a year ago. German exports advanced 0.6 percent in June from the previous months.

The positive data spurred risk appetite on markets, allowing metals to rally. It was a nice relief after all the negativity the metal market has experienced previously. Gains were really massive today.

December futures for delivery of gold jumped as much as $24.70 (1.92 percent) to $1,310 per troy ounce as of 20:21 GMT on COMEX today. September contract for silver surged $0.74 (3.78 percent) to $20.25 per ounce. Futures for copper advanced $0.093 (2.93 percent) to $3.264 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

4 Responses to “Metals Rally on Export Data from China & Germany”

  1. George Dorgan

    Explaining the slower gold price increase with tapering concerns is possibly wrong. In the case of a tapering all commodities and especially AUD are concerned. All those rose.
    The reason for the smaller rise of the gold price is possibly lower risk aversion.


    enivid Reply:

    Yeah, you are right, but isn’t decreased risk aversion one of the reasons for Fed’s QE tapering?


  2. George Dorgan

    Lower risk aversion does not imply tapering. On the contrary, tapering creates risk aversion, falling stocks, falling commodity prices and even more falling gold prices. The Fed needs more growth, less unemployment.

    Rising commodities are driven by China. We have now the US ISM, Europe PMI and possibly the upcoming China PMI 50. This means lower risk aversion, rising silver/gold ratio. When US data is better than Chinese data then gold will fall again.


    enivid Reply:

    Lower risk aversion = more private investment in economy = more jobs getting created = reason for QE tapering. I see it that way. Of course, tapering will result in higher risk aversion, but in and of itself it is risk appetite that eventually leads to tapering.


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