Daily Report 130415 2015-04-13

Main contract of domestic gold AU 1506 rose slightly and then fluctuated. In terms of trend, the gold is still considered to remain a downward trend. Attention should be paid to operational opportunities after the correction region is broken through. Recently, the market is focusing on the Fed statement toward rate hike. The Fed meeting minutes is relatively hawkish, which is different from expectations. The overnight gold ETF positions increased 2.98 tons on Friday and dropped 1.75 tons afterwards, indicating the funds are not holding an optimistic view of the gold. Date released from the CFTC reveals that the long positions of gold have been strengthening for 3 weeks. On the whole, the gold price may rally in short term, but the mid-term trend is believed to be weak.


Main contract of domestic silver AG 1506 rebounded following the trend of gold. However, strong pressure was found near RMB 3570 to RMB 3550. In terms of trend, the silver is believed to remain a downward trend afterwards and the space for rebound is considered limited. Previous short positions opened at RMB 3560 are commended to be closed.


Last week PP futures continue waving. From the upper stream, FOB Korean propylene price slightly increased $5 to average price of $1000.5 per ton, up 0.5%. In terms of devices, current operating rate is around 80%. In terms of spots, manufacturing enterprise increased its factory price which inspired dealers’ willing of investment, the market price goes up; downstream purchases accordingly to cover short position.
For instance of the wire drawing price, today's mainstream of North China bid in RMB 8900-9000 per ton, East China mainstream quotation in RMB 9100-9300 per ton, South China mainstream quotation in RMB 9100-9300 per ton. We suggest waiting and seeing the support effectiveness at RMB 8200-8300.
                                                                                   Dong LV (Investment Certificate NO. TZ008452)