Los Angeles CA, May 9 (Tangible Investments) by James O’Dell Precious metals prices edged lower across the board in early trading on Tuesday. Gold Dips As Safe Haven Demand Wanes. The yellow metal is down 0.75 percent to $1,216.80 an ounce after easing $1.90 on Monday to close at $1,226.00.
Silver is down 0.74 percent to $16.09 an ounce after sliding $0.11 on Monday to close at $16.20. The Gold/Silver ratio, the number of Silver ounces needed to buy an ounce of Gold, rose to 75.68. Platinum is down 1.09 percent to $907.00 an ounce. Palladium is down 0.62 percent to $804.00 an ounce.
Gold At 7 Week Lows
Gold hit new 7-week lows as investor demand for safe-haven assets like Gold gave way to riskier ventures like equities. “With one of the largest political risk events now cleared, some consolidation is warranted, albeit political uncertainty lingers in Italy and is likely to remain for some time,” said UBS analyst Joni Teves.
“Further pressure cannot be ruled out for now, but we expect bargain hunting to emerge and physical buying to strengthen should the market test $1,200, paving the way for a recovery.”
Meanwhile, demand for Gold bars in China is surging and continues to push up prices. Premiums for Gold in China typically average around $4 an ounce above the global spot price. In the first quarter of 2017, however, it averaged above $14 an ounce, according to the World Gold Council (WGC).
First Quarter Sales Up 30 Percent
First quarter sales of Gold bars and coins climbed 30 percent to 105.9 million tons this year compared to 2016. It was only the fourth time that sales have ever topped 100 million tons. “Several factors fueled this boom,” reported the WGC.
“Concerns over the weakness of the yuan and the outlook for the real estate market from the tail-end of last year spilled over into 2017; this combined with the usual seasonal strength around Chinese New Year and a rising Gold price to support investor sentiment.”
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