Over the past month, lower gold and silver prices were once again the key drivers of the Global Precious Metals MMI® decline. Increases in platinum and palladium prices, mainly due to optimistic outlooks for the global auto sector, couldn’t stanch the gold and silver drops.
One main trend to watch is what the Federal Reserve does with its quantitative easing program. The job market’s performance may drive the Fed’s next moves, but sources indicate that with long-end bond rates increasing sharply, rising funding costs will likely constrain any near-term tightening from the Fed. In general, if non-farm payrolls have a poor showing, gold prices could go up.
However, physical gold demand in Asia, Europe and the US remains strong, according to recent World Gold Council study figures. The WGC anticipates between 300-400 tons of gold imports into India in Q2 2013, a 200% year-on-year rise. According to the study, most Indian and Chinese consumers surveyed believe that gold prices will rise or remain stable over 1- and 5-year timespans.
Key Price Drivers
The monthly Global Precious Metals MMI® registered a value of 98 in June, a decrease of 3.9 percent from 102 in May.
At $734.19 per kilogram, Chinese silver was down 9.0 percent for the month. The price of US silver closed the month at $22.27 per ounce after dropping 8.5 percent. A 7.3 percent drop over the past month left Chinese gold bullion at $45.34 per gram. Following a 6.0 percent decline in price, US gold bullion finished the month at $1,388 per ounce. A 5.6 percent decline for Indian silver left the price at INR 43,983 ($777.43) per kilogram. Indian gold bullion prices fell 4.5 percent to $476.98 per 10 grams. The price of Japanese silver fell 4.5 percent to $7.19 per 10 grams. US platinum bar prices dropped by 3.4 percent this month to $1,454 per ounce. Japanese gold bullion closed the month at $44.81 per gram after dropping 2.4 percent. The value of Chinese platinum bar weakened by 0.6 percent this month, settling at $50.36 per gram.
The price of Japanese palladium bar jumped 8.9 percent last month to $24.19 per gram. Following a 7.5 percent change in price, US palladium bar closed the month at $749.00 per ounce. Chinese palladium bar reached $27.38 per gram after a 6.3 percent increase for the month. The price of Japanese platinum bar rose 0.8 percent to $47.44 per gram after falling the previous month.
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.