31 January 2015

Slowing US Economy Helps Precious Metals

Prices for gold rallied yesterday, followed by other precious metals, even though there is a strong case against buying bullion. Among possible reasons for today’s rally is the worse-than-expected economic data from the United States. The US economy grew 2.6 percent in the fourth quarter of the last year compared to the forecast of 3 percent and the previous quarter’s growth of 5 percent.
Precious metals often rally after bad news as traders seek safer assets. Additionally, the poor report hurt the dollar, increasing value of commodities priced in the US currency. Gold is still heading to a weekly loss but is going to end the month with gains.
April futures for delivery of gold rallied 1.43 percent to $1,272.60 per troy ounce as of 16:47 GMT on COMEX yesterday. Contract for silver gained as much as 2.34 to $17.17 per ounce. Spot price for platinum added 0.71 percent to $1,230.25 per ounce while price for palladium rose
0.44 percent to $777.19 per ounce.
Silver
Unlike gold, silver is not such a popular instrument to hedge against the inflation or to make the long-term investments. The global demand for silver is rather low, but nevertheless it becomes more and more popular among the commodity speculators. Silver production, financial news and the demand updates affect the spot and the futures prices for silver.
Among the news that usually get featured in the silver prices category of the Commodity Blog are:
1. Production decrease/increase, including the mining and refining.
2. Demand news on silver that include major funds’ investment, hedging and jewelry industry news.
3. Technical analysis of the silver prices based on the chart levels.
4. Global financial situation that influence the demand for all commodities.


Copper
Copper price news, updates and the major fundamental events that influence the price dynamics for the copper commodity. Copper ore output, refinery output, demand from the industry and the inventories stockpiling — are the major factors that influence the copper prices both in the long-term and the short-term periods.

No comments:

Post a Comment