With Greece fading from the limelight, markets focussed on the relative outperformance of the USA economy and nudged the euro near to its lowest in seven weeks at $1.0826.
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The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 0.1 percent, while the Shanghai Composite Index eased 0.2 percent. “The daily volume last week was about 25 tonnes”, he noted. One should view the price decline as a big correction within a secular bull market rather than the beginning of a bear market.
Precious metals have languished even as Greece fought over a debt deal with its creditors and a rout in Chinese equities erased nearly $4 trillion in market value.
Greek banks are expected to reopen again today although capital controls are likely to remain in place while the terms of the country’s bailout are agreed.
China’s gold reserves were up 57 per cent at the end of June, from the last time it adjusted its reserve figures more than six years ago, the central bank said. “A continuous decline could be seen in the future months”. Those shares that have resumed trading have helped unlock liquidity for investors who were hard- pressed to sell for cash. Since 2012, controlling shareholders started to use their holdings as collateral to borrow from brokers and banks.
It advanced to 1,152.78 South Korean won from 1,146.93 on Friday, to Sg$1.3712 from Sg$1.3666, to 63.5413 Indian rupees from 63.48 and to 13,380 Indonesian rupiah from 13,343.
Elsewhere in Australia, the ASX index rose 0.3% despite high volatility in the commodities world.
“We are seeing some capitulation in the precious-metals market as it believes that the rate hike is coming in September”, Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management, which oversees about $128 billion of assets, said by phone.
The Japanese Nikkei 225 was closed for Marine Day holiday, which Craig Erlam said to be “significantly hitting trading volumes”.
Gold had behaved quite counter intuitively over the past many months and my best guess is that strong hands will pick up gold at these oversold levels.
Gold spot has collapsed in the Asian hours to the lowest levels since March 2010.
South Korea’s won hit a new two-year low against the dollar, continuing a slide that started in late April.
“The U.S. dollar is firm”. In Hong Kong, Zijin Mining Group Co. lost 7.6pc. The broader picture remains weighted to the short-side with subsequent support objectives eyed at the 1.618% extension off the 2014 highs at 1100 backed by 1044/54.
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Anjie Zheng and Ewen Chew contributed to this article.
