LONDON(Commodity Online): Precious metals prices suffered corrections across the board as the dollar strengthened significantly against the euro on the day, said Barclays Capital in a research note. The market remains focused on the eurozone as the yields of Italian bonds surged due to escalating fears of a sovereign default.
Barclays economists highlighted that with Berlusconi’s impending resignation, the 2012 budget approval and a possible early election in the country, the entire process could potentially further delay the implementation of much needed structural reforms in the country.
Despite further sovereign debt worries, Gold shaved off 0.7% to $1771.49/oz, while Silver dropped 2.5% to $34.05/oz. Platinum and Palladium prices tumbled, down by 1.8% and 4.1%, respectively. Gold SPDR continued to see net inflows for the month, as total gold holdings inched up by 3 tonnes on the day.
In the supply news, Anglo Ashanti Gold, the third largest gold producer in the world, reported its Q3 production. The gold miner produced 1.09Moz of the yellow metal for the quarter in reference, down by a slight 6% y/y. The production guidance remained unchanged at 4.45Moz.
