Correction: This article has been updated to reflect a revised Global Precious Metals MMI index value due to a formula error. We apologize for any inconvenience this may have caused.
MetalMiner’s Global Precious Metals price index dropped 4.3 percent from 115 to 110. With no exception, every single precious metal from every market around the globe fell.
“The price decline in the Global Precious Metals MMI® may have completed its course,” said Lisa Reisman, managing editor of MetalMiner. “Gold appears on the rise on the back of what many believe will remain loose US monetary policy.”
The impending fiscal cliff, if not resolved before the first of the year, would cut US government spending by about $600 billion and could send the US back into recession. We’d expect gold prices along with a range of precious metals prices to rise until Congress and the President address the fiscal cliff.
In other global precious metals news, China’s demand for gold will rise by 1 percent to 860 tons this year, making it the largest consumer in the world — surpassing India for the first time.
Price Drivers of the Precious Metals Index Drop
A 7 percent decline for US silver left the price at $32.26 per ounce, leading the way for across-the-board declines on the MetalMiner IndX℠.
Following a 6.5 percent decline in price, US platinum bar finished the month at $1,565 per ounce. The price of US palladium bar fell 6.2 percent to $603.00 per ounce.
Following a 3.8 percent decline in price, US gold bullion finished the month at $1,710 per ounce. Last month, Chinese gold bullion prices dropped by 2.2 percent to CNY 345.75 ($55.42) per gram.
The Global Precious Metals MMI® collects and weights 14 global precious metal price points to provide a unique view into precious metal price trends over a 30-day period. For more information on the Global Precious Metals MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.