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Market Nuggets: Chinese Lead Acid Battery Output Rises On Electric Bike Production – Barclays

Thursday August 16, 2012 08:33 AM

Data out of China shows lead acid battery production rose by 45% year-over-year in July alone and have risen 25% year-to-date, notes Barclays Capital. This should be supportive for the lead market. “Given battery production represents close to 70% of total lead demand in China, it is certainly an encouraging trend,” the bank says. They note electric-bike production rose 45% year-over-year in July and 22% for 2012. Given the strong demand data trends, Barclays says there “a solid case” to make that this will continue. Supplies have tightened because of the strength of demand, and it’s likely solid demand will continue into year end.

By Debbie Carlson of Kitco News dcarlson@kitco.com


Market Nuggets: Heady Resistance For Gold Stands At $1,625-30 – MKS Capital

Thursday August 16, 2012 08:06 AM

Gold has found stiff resistance at the top end of the recent trading range, between $1,625-30 an ounce, with reports that offers to sell “are fairly thick” at that region, says Alex Thorndike, senior trader, precious metals and foreign exchange for MKS Capital. However, he adds that if the market can move above that area, resting buy orders are growing above that region. “The downside has seen pretty decent physical/Chinese interest below $1,600 and think we will continue to see buying on dips following aggressive news-driven sell-offs,” he says. Looking at technical charts, the 100-day moving average will be the first short-term resistance at $1,607.80 followed by the $1,625-30 area. First support comes in at $1,590, followed by good trendline support dating back to mid-May which is at $1,573.50.

By Debbie Carlson of Kitco News dcarlson@kitco.com


INTL FCStone: More Range Trading Likely Ahead For Gold

Thursday August 16, 2012 08:06 AM

INTL FCStone sees more range trading in gold in the foreseeable future. “We see no major ‘pressure points’ that are brewing in the precious markets that could con­ceivably cause a decisive break in one direction or another,” says commodities consultant Edward Meir. “It seems that gold is going to remain range-bound for a little while longer, but we suspect that despite the relative calm, Euro­pean debt jitters can resurface in short order. We would there­fore want to keep cash in reserve in order to take advantage of any exaggerated declines towards the bottom end of the trading ranges.”

By Allen Sykora of Kitco News; asykora@kitco.com


Market Nuggets: Gold Prices May Rise If US Economic Data Slips – HSBC

Thursday August 16, 2012 08:04 AM

Gold prices could rise if U.S. economic data comes in lower than expected, as it might encourage expectations of further monetary easing, says HSBC. On Thursday, the U.S. Census Bureau will release data on new housing construction for the month of July, while consumer confidence data will be released by Thomson Reuters/University of Michigan on Friday. Both reports are expected to be weaker than the previous data. “Gold price reactions to the upcoming U.S. economic data releases are likely to be exaggerated given the thin summer trading conditions, we believe,” HSBC says.

By Debbie Carlson of Kitco News dcarlson@kitco.com

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