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.”
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