LONDON (Commodity Online): COMEX prices eased across the complex on Wednesday, led by Palladium prices. Palladium lost 2.7% to close at $644.72/oz while Silver prices lost 2.6% to settle at $33.63/oz, its weakest close since the start of the month, said Barclays Capital in a research note.
The fragile macro environment continues to weigh upon prices with the uncertainty heightening in Europe. The UK Monetary Policy Committee has indicated more QE will be needed and Barclays economists note that while there is little doubt that US economic data has supported US markets, they are disinclined to believe that markets can truly diverge in the event of a European credit contraction.
Gold prices fell by 1.1% on Wednesday to close at $1761.5/oz as the dollar strengthened against the euro to levels last seen a month ago and US equity markets weakened. Gold investment demand has continued to grow albeit at a slowed pace.
Gold physically backed ETPs rose by 9.4 tonnes yesterday to take metal held in trust across the 25 products Barclays tracks to 2248.4 tonnes. Flows for the month have now reached 37.3 tonnes compared to 25.8 tonnes in October. Total holdings are at their highest since 22 August. Physical demand for gold on the other hand has slowed in Asia although interest is set to emerge upon further price dips.
Reuters cited bar premiums in India had remained steady at $1.20-1.40/oz. Silver ETP holdings rose by 5 tonnes on Wednesday with flows for the month modestly positive at 59 tonnes. PGM flows for the month so far have diverged again, with Platinum in positive territory at 13.6koz and Palladium in negative territory at 11.8koz.
