LOSING SHINE: Gold declines for 5 straight weeks, Holdings in Gold ETFs fall

QUOTE: -"Don't look for society to give you permission to be yourself."

MARKET PULSE

  • Today: German IFO business climate index
  • Greece's government is set to begin talks with creditors on new bailout agreement
  • Tsipras's paradox is six months of pain and enduring popularity
  • ECB rejects proposals by Greek authorities to reopen country's financial markets
  • ECB's Draghi sets sights on reviving economy with Greece on back seat
  • Long USD bets at 375,137 (July 21), the most since March 24
  • Gold- net-short position of 11,345 contracts in the week ended July 21
  • Gold-Bearish wagers climbed 12 % to 121,238
  • Gold ETF assets dropped 1.1 % last week, to 1,554.4 MT (biggest decline since March 15)




INDIAN INR
MARKETS

  • INR little changed at 64.0625 per USD
  • 1-month implied volatility climbs 36 bps to 5.9850%; avg for past 12-months is 6.6931%
  • INR 1-month forwards gain 0.1% to 64.44 per USD
  • USD/INR's MACD above both signal line and zero and rising
  • USD/INR Pivot point at 63.9929
  • USD/INR support at 63.9258, 63.8092 and 63.6255
  • USD/INR resistance at 64.1095, 64.1766, 64.3603

FACTORS

  • Gunmen attack Indian police station near Pakistan, reports say
  • Global investors bought net $48m of Indian stocks on July 23:
  • India's leading stock index Sensex fell 0.9% on July 24



FOREIGN EXCHANGE
MARKETS

  • USD Spot Index declined 0.1 % to 1,207.74 after rising to 1,212.78 on Fri
  • USD/JPY -0.27% at 123.47 (range 123.43-123.84)
  • EUR/USD +0.18% at 1.1004 (range 1.0969-1.1015)
  • AUD/USD +0.12% at 0.7291 (range 0.7266-0.7299)
  • USD/CAD -0.15% at 1.3030 (range 1.3022-1.3057)
  • GBP/USD +0.11% at 1.5525 (range 1.5495-1.5538)
  • USD/CHF -0.25% at 0.9605 (range 0.9598-0.9638)

FACTORS

  • Today: German IFO business climate index
  • Greece's government is set to begin talks with creditors on new bailout agreement
  • Tsipras's paradox is six months of pain and enduring popularity
  • ECB rejects proposals by Greek authorities to reopen country's financial markets
  • ECB's Draghi sets sights on reviving economy with Greece on back seat
  • Long USD bets at 375,137 (July 21), the most since March 24



GOLD
MARKETS

  • Gold Spot fell 0.4 % to $1,094.50 and was traded at $1,096.99 in Asian hours
  • Gold dropped for the past 5 weeks and declined to $1,077.40 on Friday (Feb 2010 low)
  • Gold lost 7.4 % this year
  • Gold December future rose 1 % to $1,096.50
  • Prices fell 4.1 % last week, dropping to $1,073.70 on Fri, Feb 2010 low



FACTORS

  • Gold- net-short position of 11,345 contracts in the week ended July 21
  • Gold-Bearish wagers climbed 12 % to 121,238
  • Gold ETF assets fell 1.1 % last week, to 1,554.4 MT (biggest decline since March 15)