Gold and silver prices fell to their lowest levels since early January, wiping out a multiweek rally as weak short-term precious-metal demand and an easing of tensions over Greek sovereign debt combined to weigh on the safe-haven market.
Gold appeared to be correcting from a recent rally that had been driven by concerns that the European Central Bank’s new round of stimulus could weaken currencies and prompt inflation, and that the election of a new government in Greece could threaten the country’s commitment to repaying its debt.
US silver saw the biggest price decline of the day, dropping 5.7% to close at $16.32 per ounce on Tuesday, February 17. The price of Indian silver declined 1.5% to INR 38,532 ($619.41) per kilogram. The price of Chinese silver increased 0.8% to CNY 3,640 ($582.30) per kilogram. Japanese silver prices rose 0.5% to JPY 661.00 ($5.58) per 10 grams.
The price of US gold bullion fell 2.2% to $1,204 per ounce. Indian gold bullion prices saw a 0.8% decline to INR 26,691 ($429.07) per 10 grams. Japanese gold bullion ended the day at JPY 4,682 ($39.51) per gram, after the 0.2% drop on Tuesday. The price of Chinese gold bullion remained essentially flat at CNY 247.91 ($39.66) per gram.
At $1,169 per ounce, US platinum bar fell 2.9% on Tuesday. Japanese platinum bar ended the day at JPY 4,564 ($38.52) per gram, after the 1.0% drop yesterday. Chinese platinum bar stayed flat at around CNY 259.00 ($41.43) per gram.
The price of US palladium bar fell 1.4% to $777.00 per ounce. Japanese palladium bar held its value yesterday at JPY 3,091 ($26.09) per gram. At CNY 174.00 ($27.84) per gram, the price of Chinese palladium bar was essentially unchanged.