Abans Group Commodity World Round Up

27th Jul – 31st Jul

1. United States’ second quarter GDP fell by 32.9%

Jul 30, 2020

United States’ Q2 GDP declined by 32.9%, against an expected 34.7% contraction; this downturn in economic activity has been the fastest in the last two hundred years in United States history. A significant contraction in exports, spending by state and local governments, along with other factors, contributed to bring the GDP down.

Source: Bloomberg

2. Global gold jewellery demand down, as investment demand almost doubles

Jul 30, 2020

Gold trends have changed significantly with the Covid-19, and its impact on the global economy, as the sentiments around the globe changed. Jewellery demand has declined 46%, from 1,064.6 tonnes in H1 of 2019, to 572 tonnes in H1 of 2020, while investment demand increased by a whopping 90%, from 595 tonnes in H1 of 2019, to 1,130.7 tonnes in H1 of 2020.

Source: WGC, Reuters

3. Federal Reserve held interest rates steady

Jul 29, 2020

The Federal Open Market Committee (FOMC) concluded its two-day meeting on Wednesday, and held interest rates steady at 0-0.25%. The FOMC reiterated to use its full range of tools to support the economy, as long as it takes to recover from the Covid-19 impact.

Source: CNBC

4. US pending home sales index rose 16.6% in June

Jul 28, 2020

On the US economic data front, the National Association of Realtors said that the pending home sales index rose 16.6% to 116.1 in June, against a market forecast of a 15% rise. Pending home sales advanced 6.3% from a year ago.

Source: Market Watch

5. Sales of new homes in the US rose by a sharp 13.8% in June, followed by a 19.4% jump in May

Jul 27, 2020

According to the US Commerce Department, the sales of new homes in the US rose by a sharp 13.8% in June, followed by a 19.4% jump in May. The June gains pushed the sales of new homes to a seasonally adjusted annual rate of 776,000, a better-than-expected performance.

Source: Yahoo Finance

6. Gold consumption in China declined 38% YoY in H1

Jul 28, 2020

According to data by China’s Gold Association, gold consumption in China declined 38% YoY in H1 of 2020 to 323.29 tonnes because of Covid-19, although demand has started to recover in the second quarter. Chinese consumption in the Q1 of 2020 was down almost 50% YoY to 144.09 tonnes, while Q2 of 2020 saw a decline in consumption by 26.2% YoY to 174.66 tonnes.

Source: Financial Express

7. Copper inventory at LME warehouses recorded the biggest drop in July 2020, since 2009

Jul 31, 2020

According to data by the LME, copper inventory in July 2020 declined by 88,475 tons, from 216,600 tons to 128,125 tons, a drop of 40.85%, this being the biggest monthly drop since 2009.

Source: Reuters

8. China’s July Manufacturing PMI beats expectations

Jul 31, 2020

China’s Manufacturing Purchasing Managers Index (PMI), for the month of July, came in at 51.5, against expectations of 50.8; this is the 5th consecutive PMI reading above 50, suggesting an expansion, and a positive impact of the Chinese stimulus programs.

Source: Reuters

9. Japan’s industrial output rose 2.7% in June

Jul 31, 2020

Japan’s industrial output rose 2.7% in June’20 from May’20, against a market forecast of a 1.2% rise, indicating a pick-up in factory activity in Japan. Data suggests a pickup in factory activity, after a state of emergency over the novel Covid-19 ended.

Source: Reuters