HSBC-Precious Metals Daily to follow results Gold curbed, PGMs fall on summit expectations；prices-20250815

Market focus, emerging trends

Gold moved in a narrow range in Asian and London trading ahead of the USopening. Trading volume was modest, and the focus of the market was centered onthe upcoming summit between Presidents Trump and Putin in Anchorage, Alaska. Ina reverse from recent trading, China-based institutions turned sellers of silver but didbuy gold. Producer hedging in gold continued. The PGMs were also subject to lighttrading but were also focused on the upcoming Alaska talks.

In US trading, gold was initially supported by a softer USD, but gains were limited asrisk sentiment was marginally higher. This was followed by a solid increase in USretail sales which rose 0.5% in July after an upwardly revised 0.9% gain in June,according to the Census Bureau. Although usually a much anticipated release, thefocus of the market was on the Trump/Putin talks to begin later in the day. Optimismthat the talks may be the ‘beginning of the end’ of the Ukraine war clipped gold.Comments ahead of the talks weighed on the bullion markets. The FT reported thatthe Kremlin stated that all aspects of US-Russian relations would be discussed, notjust Ukraine, and that a result was expected. President Trump meanwhile stated he‘is not going to be happy’ if no ceasefire is agreed and he would ‘walk away’ if he feltthe talks were not going well. Silver also fell, but the real declines came in the PGMs.Rusia is the largest palladium producer and a major platinum producer. Successfultalks could begin a process whereby sanctions are eventually lifted.