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Precious metals continue to struggle as PGMs hit multi-year lows

https://www.chemnet.com   Aug 05,2015 Platts
Precious metals continue to struggle Tuesday despite price supporting news, led by platinum group metals hitting multi-year lows in morning trading.

Platinum fell below $950/oz early Tuesday to its lowest level since 2009, whilst palladium hit its lowest price since 2012 at $590/oz.

Gold traded below $1,090/oz, at levels close to five-year lows, despite price supporting news from the US and positive physical demand data.

Poor manufacturing data from the US Monday would be expected to help gold, as an interest rate hike by the Federal Reserve in the near term looks less likely in the face of a weaker US economy.

A higher US interest rate makes dollar-held assets such as precious metals more expensive, whilst reducing their appeal as non-yielding assets.

Meanwhile, figures from the US Mint showed 70,000 oz of gold coins were sold in the US in July, the highest monthly volume since April 2013.

Australia's Perth Mint also reported "strong" gold coin sales of 51,000 oz, according to a note by Commerzbank Tuesday, whilst Turkey reported imports of 14.3 mt of gold in July, its highest level since November.

And news from the US automotive industry that car sales were 6.6% higher in July on the year had no affect on PGMs, widely used in autocatalysts.

"The higher sales figures were attributable primarily to increased demand for SUVs, which should really point to robust demand for palladium from the automotive industry," said the Commerzbank note.
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