Silver drops despite strong investment demand

Source: Dukascopy Bank SA
Precious metals were mixed on Friday as investors continued to lock in gains after the previous rally. Moreover, upbeat reading of German business confidence eroded safe-haven appeal of the commodity group. At the same time, broadly weaker greenback provided support for the commodity complex.

Gold slumped on profit taking and positive German data. However, weaker-than-expected new home sales in the US sent the US currency lower, supporting the yellow metal.

Silver dropped despite strong activity in silver-backed ETFs. Moreover, speculation that the Royal Canadian Mint follow the US mint trend and run out of silver coins was supportive for the grey metal.

Platinum jumped after Anglo American announced a fall in platinum production. Platinum output plunged 29% in Q4 of 2012 because of strikes in South Africa.

Palladium soared after the data showed that Russia's palladium sales tanked 68% in 2012. In 2013, Russia's sales of palladium are likely to vary from "zero to several tons" as the country's reserves appear to be exhausted, said Anton Berlin, deputy chief of ZAO Normetimpex.
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Mon, 28 Jan 2013 07:55:03 GMT

Copper plunges on rising global output

Industrial metals were bearish on Friday despite encouraging German business confidence data. The Ifo institute's business climate index rose to 104.2 this month, the highest level since June. However, weak US housing data release weighted on industrial metals. US new home sales dropped 7.3% on a monthly basis in December. Aluminum sagged 3.44% after dismal data from the US property market.

Fri, 25 Jan 2013 17:37:04 GMT

US new home sales decrease unexpectedly in December

New home sales in the U.S. dropped unexpectedly in the month of December despite an improvement of longer-term trend, the U.S. Commerce Department reported on Friday. New single-family homes declined 7.3% from a November's revised level of 398,000 to a seasonally adjusted 369,000 in December, while economists expected the new home sales to rise to 388,000."2012 was the first year

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