Precious Metals Under Immediate Pressure

Following yesterday's average losses of 1.3 percent amongst the precious metals, today saw very little change. On average, today saw precious metals posting an average loss of 0.1 percent.

Base metals today are essentially unchanged as well, with copper up 0.5 percent, zinc up the same 0.5 percent, and all other base metals in negative territory. However, volume trading is solid, with 18,941 lots traded by 7am in London today. Market participants are now concerned that future haven demand is weakened for precious metals, though the most important factor will be the future of the U.S. dollar and real rates.

The U.S. dollar is seeing significant gains on the yuan today, with the dollar's yuan rate up 0.88. This is its largest increase since August 12th, 2015.