Daily Report 120315 2015-03-12

Main contract of domestic gold AU 1506 remained a downward trend in the night session, breaking down the bolster of RMB 237.5. The gold is believed to keep dropping afterwards. Previous short positions opened at RMB 254.5 could be held. However, the gold may rally after decreasing for 8 straight days. Short positions opened at relatively low prices are recommended to be closed. With the expectation of rate hike increasing and the ECB bond purchasing project settled down, the capital market is increasingly fluctuating. The US dollar index soars to almost as high as 100 while the Euro keeps dropping. The funds are moving from the gold market to market with high rate of return. As for the funds, the overnight gold ETF positions have been decreasing for 18.21 tons altogether since March 1, 2015, indicating the funds’ interest in gold gets lower and lower.


Main contract of domestic silver AG 1506 kept a downward trend in the night session. The bolster effect of RMB 3400 will be tested in short term. On the whole, the silver is believed to remain a downward trend. Previous short positions opened at RMB 3800 could be held. Part of short positions opened at RMB 3430 is recommended to be closed in case the silver may rally afterwards.

Stock index

Stock index remained fluctuating during the intraday trading and dropped in the afternoon session, especially after the economic data is released. On the whole, the index market will be in a fluctuating status for a while. It is possible for the index to decrease in the middle term. Investors are recommended to follow the market sentiment and technical analysis.

Yesterday PP futures opened up low then followed with a downward trend. It opened at RMB 8018 then closed at RMB 7931. The trading volume increased 73578 lots to 550000 lots and the holdings increased 21752 lots to 266000 lots. About upstream, FOB Korean propylene continues falling $20 to average price $995.5 per ton. In terms of device, current rate of operating rate remains the same.
Like wire drawing, today's mainstream of north China bid in RMB 8050-8300 per ton, east China mainstream quotation in RMB 8150-8400 per ton, south China mainstream quotation in RMB 8250-8400 per ton. From the quotation, current price broke out 20-day moving average; and the price fluctuation is narrowed. We think in the near future price is more likely to continue the weak shock.
                                                                               Dong LV (Investment Certificate NO. TZ008452)