Spot gold fell 1.00% intraday to $4,122.52/oz.

At a July 7 briefing, Foreign Ministry spokeswoman Mao Ning said China firmly opposes Japanese interference with the lawful activities of a Chinese marine research vessel and has lodged a stern protest with Tokyo. Mao reiterated that the Diaoyu Islands and affiliated islets are China’s inherent territory and that Chinese research operations in surrounding waters fall within China’s sovereign rights. Japan’s coast guard said on July 3 that around 11:00 a.m. a Chinese survey ship entered the EEZ near Kumejima, Okinawa, deployed a cable‑like object and was radioed by a patrol vessel to stop.

Hong Kong Gold Central Clearing and Settlement System began trial operations today. Under a January cooperation agreement, the Hong Kong Treasury Bureau and the Shanghai Gold Exchange launched the first phase of “physical connectivity.” The Hong Kong gold settlement company has applied to become an international member of the Shanghai Gold Exchange and opened a physical-gold account; participants can deposit held physical gold into the Shanghai exchange international board’s Hong Kong-designated vault. Bi-directional transfers will allow firms to access the Shanghai on-exchange market and Hong Kong OTC market, enabling physical gold flows between the two systems.