Weak performance across metal markets
Volume dropped noticeably in trading yesterday in precious metals markets affected my mixed and volatile trading across equities and commodities markets. European indices surrendered their earlier gains to end in the red yesterday and American equities trailed with somewhat bearish performance; while Asia started today with mixed performance where the Nikkei index declined by 0.47%.
Metals declined yesterday despite the positive start for the week. Gold ended in New York last night at 1112.60 down by 0.40% after setting the high of 1123.90. Silver also fell by 0.49% and ended at 16.21 and finally platinum declined by 0.26% at 1527.00.
The bearish sentiment prevailed in the latter half of the session last night, where gold dropped in London from 1119.75 to 1115.25 in the P.M Fixing, while silver's fixing in London was at 16.44 above what it settled at in NY.
On the other hand, crude declined yesterday following its three-week rally, as profit taking before the expiration of March futures fueled the decline, alongside the risk aversion sentiment that shadow the market amid the volatility and the mixed signals from the global economy.
Today, metals resumed to compensate some of their endured losses yesterday, as gold was trading at 1116.50 higher by 0.35%, and silver was higher by 0.74% at 16.33; while platinum was trading positively around 1539.00 higher by 0.79%; data as of 02:30 EST.
Opposed to what was seen in the past period, trading in metal markets is tilting to positivity, despite the fluctuations and the volatility. This insures that demand is reviving on the metals from safe haven demand to speculative investments, as well as hedge against the uncertainty and inflation expectations especially over the latter half of the year.
Physical demand also improved on metals, amid expectations for the recovery to continue to take place and also taking advantage of the decline that was seen from the elevated levels reached.
Meanwhile, assessing commodity indices performance yesterday they also presented varying performance; the S&P GSCI Index added 0.42 points to settle at 522.40 while the RJ/CRB Index shed 1.02 points to settle at 276.78. The volatility that spread across the market was reflected on the indices which we expect to extend into today's session.