SHANGHAI, Jul. 21 (SMM) – Gold prices plunged more than USD 60/Oz to hit a low of USD 1,071.28/Oz on Monday. Last weekend, China announced its official scale of gold reserves since April 2009 for the first time. China currently reserves about 1,658 mt gold and gold increases 100 mt per year. Gold accounts for 1.65% in China’s total official reserve assets, compared with 1.1% in 2009.
However, the reserve scale seems to fall short of market estimate. Also, US Fed is more likely to increase interest rate this year, driving dollar up, which bodes ill for gold prices. One US Fed’s official forecasts that growth in US’s GDP will be 3% in H2 2015 and US economy will not need emergent policies.
Greece officials spoke that Greek has paid EUR 4.2 billion to the European Central Bank and EUR 2 billion to the International Monetary Fund (IMF). IMF also expressed that Greek has paid off its debts to IMF and IMF will continue to support Greek’s economy growth. German’s PPI for June fell 0.1% MoM and 1.4% YoY, on par with forecasts. Eurozone’s unseasonally current account balance late May came in at EUR 3.4 billion, with previous value of EUR 22 billion. The Deutsche Bundesbank issued a monthly report which read that German’s economy growth is healthy.
Crude oil prices fell below USD 50/bbl by 1.5%, resulting from sufficient supply and stronger dollar. European and US stocks all ended up. LME base metals moved at lows but LME nickel rose.