SHANGHAI, Jul. 22 (SMM) – Major reports are lacked on Wednesday and market stays quiet as a whole. As such, bullish sentiment towards dollar eased, which allowed dollar to fall from a 3-month high. Nonetheless, gold prices failed to rally on Tuesday after Monday’s tumbling. Some news reported on Tuesday that China State Reserve Bureau’s will reserve base metals, driving zinc and nickel prices up. But the rising momentum failed to extend to Tuesday evening session.
US Fed reversed June’s capacity utilization to 77.8% with the flash data of 78.4%. June’s monthly industrial output was revised to 0.2% with the initial value of 0.3% and manufacturing output to -0.1%, on par with the flash data, depressing dollar to some extent.
Growing bond yields in euro zone and Greek’s staying in euro zone also supported euro to rebound. But meeting minutes of the Bank of England should be closely eyed. Medium survey of 26 economists shows that 65% of them expect at least one member of Monetary Policy Committee to agree with interest rate hike in August. Also, President of the Bank of England’s speech last week possibly indicates interest rate hike in advance. Those factors pressed dollar to end down 0.69% to 97.36.
London gold edged up 0.39% to USD 1,101.16/Oz. Growth in crude oil prices were weakened by rising US’s API crude oil stocks on Tuesday. Thus, crude oil prices closed up 1.46% to USD 50.67/bbl. European and US stocks edged down. News of China State Reserve Bureau’s reserving base metals has been absorbed by market, nickel prices retreated earlier gains to finish down.