LONDON (Commodity Online): Precious metals prices have remained under pressure this week as the dollar has strengthened, equity markets have weakened and economic insecurity has heightened over the US, Europe and China, said Barclays Capital in a briefing.

Gold prices slipped below $1700/oz and although physical demand responded to lower prices it has failed to provide a solid floor as yet. Instead investment demand has strengthened with ETP flows for November to date doubling flows recorded in October and taking total metal held to a new record high, while central bank net buying continues.

“Although physical demand should limit the downside amid the seasonal strength, investment demand will drive prices higher and we retain our positive view on prices amid the gold favourable backdrop. Silver prices remain vulnerable in light of its weak supply and demand dynamics and soft investor interest; while both platinum and palladium markets are to be in surplus this year, we expect palladium to swing into deficit next year,” Barclays concluded.