Palladium edges lower as IMF cuts growth forecast

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Source: Dukascopy Bank SA
Precious metals except for silver slid on Wednesday as stronger US Dollar after the Bank of Canada left its interest rates unchanged put heavy pressure on the commodity complex. The demand for greenback was further boosted after the IMF cut its growth forecasts. The IMF now expects the Eurozone's economy to contract 0.1% this year versus October's estimate of a 0.2% growth. Global economy is likely to expand at modest 3.5% compared to previous forecast of 4.1%.

Gold dipped amid broadly firmer US Dollar. Moreover, concerns over a potential slowdown of India's demand after gold tax increase pressurized gold prices.

Silver was the only gainer, reaching a six-week high after the US Mint exhausted its stock of 2013 American Eagle coins and temporary suspended sales until January 24. Moreover, a rapid growth of silver jewelry sales in the US during the Christmas season supported the grey metal.

Platinum and Palladium, the most growth sensitive metals in the complex, retreated from the recent highs after the IMF cut its growth forecast. Slower economic expansion is likely to reduce industrial demand for platinum and palladium.
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