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Precious Metals Edge Lower On Global Economic Concerns: April 9, 2012

ByCommodityOnline
Published 04/09/2012, 05:56 AM
Updated 05/14/2017, 06:45 AM
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Spot gold prices traded lower by almost 2 percent in the last week. In the initial part of the week, gold witnessed gains on account of favorable ISM manufacturing data from the US, but in the later part, the yellow metal prices came under pressure as the minutes of the US Federal Reserve's last policy meeting released on Tuesday indicated that the Fed will not go for further monetary stimulus unless the US economic growth weakens to less than 2 percent.

Reduced expectations of further quantitative easing led strength in the US Dollar Index and also resulted in weak sentiments in the global markets. This acted as a negative factor for gold prices last week.

On a week-on-week basis, holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 1,286.62 tonnes by 6th April 2012.

On a year-to-date basis, gold holdings rose around 2.6 percent from the previous level of 1,254.57 tonnes on 31st December 2011.

Silver

Taking cues from a fall in gold prices and strength in the US Dollar Index, spot silver prices dropped around 1.6 percent in the last week.

Rise in risk aversion in global markets after reduced expectations for further monetary stimulus from the Fed also acted as a negative factor for prices.

Silver being an industrial metal also took cues from mixed movement in base metals pack. The white metal touched a low of $30.96/oz and ended its trading session at $31.72/oz in the last week.

Holdings in the iShares Silver Trust, the world's largest silver-backed exchange-traded fund, declined around 0.7 percent to 9665.38 tonnes on 5th April 2012 from the previous 9734.55 tonnes on 30th March 2012.

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