The biggest movers over the quarter were precious metals, with - TopicsExpress



          

The biggest movers over the quarter were precious metals, with gold and silver leading the asset class lower. Silver under-performed gold, falling 31% and 24% respectively. This is interesting since silver is considered an industrial metal and thus a better gauge of global economic sentiment. Fears about 1, China’s economic outlook and 2, rising Treasury yields thwarting the US economic recovery weighed on economically sensitive assets like silver and the Aussie dollar. The drivers behind the decline in the gold price were different from silver’s. An environment of low inflation and a rising dollar on the back of Fed tapering talk, which reduced the need for an inflation hedge and a currency alternative, weighed heavily on the yellow metal. We believe there could be further declines in gold, after we broke below $1,200 it opens the way to $1,150 (the 62.8% Fib retracement of the March 2008 – September 2011 uptrend), before there may be a prospect of a recovery in the price of gold. cnbc/id/100850846
Posted on: Sat, 29 Jun 2013 09:48:07 +0000

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