Is adverse overseas economic data weighing on precious metals?
*The Wall Street Journal, by Matt Day, April 23, 2012:
''A potential freeze in Europe's financial system has spurred
traders to favor the flexibility of cash instead of precious metals
futures. And rising concerns about Europe tend to prop up
investment in U.S. dollar-denominated debt, driving the currency higher
and weighing on dollar-denominated gold by making the futures appear
more expensive for buyers using other currencies.
Industrial metals saw sharper declines than gold on Monday on weaker
demand expectations after the European economic data and a continued
manufacturing slowdown in key raw materials consumer China.
HSBC's gauge of China's nationwide manufacturing activity remained in
contraction for a sixth consecutive month in April, according to
preliminary estimates.
Silver, which sees more use by industry than as an investment, was
recently down 3.2% at $30.63 a troy ounce. Futures touched their
lowest intraday price since Jan. 20.
Platinum and palladium, used chiefly by the auto industry, also
declined. Platinum was recently off 1.5% at $1,561.20 a troy
ounce, and palladium fell 1% to $670.15 an ounce.''
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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