4th May 2017

The precious metals markets fell again on Wednesday, as a stronger dollar (particularly against the yen) and a “steady as she goes” Fed statement out late in the afternoon, both combined to keep the pressure on the complex. Gold dropped to a one-month low of $1238/ ounce at one point on Wednesday and has now broken below key $1240 support level highlighted in our last monthly report. Silver had a particularly bad day as well, falling some $.35 and closing at just below $16.50. The complex has now lost roughly $2/ounce in just the last three weeks. Platinum and palladium also experienced hefty falls, dropping by $27/ounce and $17/ounce respectively. They came under severe pressure on account of a massive retrenchment we saw in base metals, led mainly by copper, nickel and zinc. Continued concern about Chinese growth, along with likely fund liquidation, seems to be pressuring the base metals complex.