Nearly $1.7 Billion Wiped Out From Precious Metal Funds

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Gold, silver and bronze

Gold and silver slid to 4-year lows last week as the Bloomberg Dollar Spot Index climbed after Republicans gained control of the Senate from the Democrats in US midterm elections and Bank of Japan Governor Haruhiko Kuroda said he saw no limit to the steps the BOJ may take to defeat deflation. About $1.66 billion was erased from the value of precious metals exchange-traded product holdings today.

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The Federal Reserve is moving closer to raising interest rates just as other central banks seek to spur their economies, Bloomberg reported. Rising rates cuts gold’s allure because bullion generally offers investors returns only through price gains, while a stronger dollar typically curbs demand for a store of value. Gold futures are set for the first back-to-back annual drops since 1998.

Indian silver saw a 3.9% drop on Friday, November 7, landing at INR 34,100 ($556.24) per kilogram and making it the biggest mover of the day. The price of Japanese silver reached a 30-day low after decreasing 3.3% to JPY 564.00 ($5.18) per 10 grams. The price of Chinese silver fell 1.2% to a 30-day low of CNY 3,300 ($537.31) per kilogram last Friday. After falling for two days, the price of US silver rose 0.7% to $15.43 per ounce.

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At INR 25,555 ($416.85) per 10 grams, Indian gold bullion fell 1.6% last Friday. Japanese gold bullion ended the day at JPY 4,205 ($38.62) per gram, after the 0.8% drop last Friday. Just off of a 30-day low of CNY 224.30 ($36.52) per gram, the price of Chinese gold bullion rose 0.2% last Friday. After a 0.1% increase, US gold bullion finished the day at $1,141 per ounce.

The price of US platinum bar declined 1.0% to $1,190 per ounce. Japanese platinum bar closed 0.9% lower at JPY 4,417 ($40.57) per gram. Chinese platinum bar prices saw a 0.8% decline to CNY 252.00 ($41.03) per gram.

Japanese palladium bar finished the day up 1.2% to JPY 2,806 ($25.77) per gram. US palladium bar finished the day down 1.1% to $747.00 per ounce. The price of Chinese palladium bar fell 0.6% to CNY 166.00 ($27.03) per gram.

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