Fundamentals and News*:
- Platinum extended its slump to the lowest in more than six years amid concerns demand from auto makers will slow as investigations into the Volkswagen AG scandal deepen. Gold was little changed.
- Volkswagen cars with diesel engines rigged to cheat on diesel emissions tests are being pulled from markets in Spain, Switzerland, Italy, the Netherlands and Belgium, while prosecutors in Sweden consider opening an investigation on potential corruption. About 42 percent of platinum demand comes from its use in pollution-control devices in diesel engines, according to Morgan Stanley.
- The widening investigation is reducing the appeal of the vehicle type at a time when the Federal Reserve is expected to raise borrowing costs, limiting American consumers’ capacity to get car loans. Platinum prices are heading for a fifth straight quarterly loss, the longest streak since 1991.
- “With the situation with Volkswagen, a lot of analysts are looking for weaker automative sales,” Fain Shaffer, the president of Infinity Trading Corp. in Indianapolis, said in a telephone interview. “If interest rates rise, demand for cars will wane, and there will be less demand for platinum.”
- Platinum futures for January delivery fell 0.5 percent to $917.90 an ounce on the New York Mercantile Exchange, after touching $899.60, the lowest for a most-active contract since December 2008. Palladium traded steady.
- Gold futures for December delivery slipped less than 0.1 percent to $1,131.20 an ounce on the Comex in New York. Prices are set for a fifth straight quarterly loss, the longest losing streak since 1997. Silver gained.
- Platinum is trading at a discount of about $213 to gold, the biggest since August 2012.
- Some investors who had been betting on platinum outperforming gold are now exiting that trade, David Govett, head of precious metals at broker Marex Spectron Group in London, said by telephone.
Data Forthcoming Releases:
|4:15 PM||USD||ADP Non-Farm Employment Change||192K||190K|
|4:30 PM||CAD||GDP m/m||0.2%||0.5%|
|11:00 PM||USD||Fed Chair Yellen Speak|
Resistance & Support Levels:
|Gold||$ 1,170.2||$ 1,156.9||$ 1,148.7||$ 1,122.1||$ 1,113.9||$ 1,100.7|
|Silver||$ 15.49||$ 15.22||$ 15.05||$ 14.51||$ 14.34||$ 14.07|
Taken from Gold Silver City – Website to buy Gold and Silver bullion at the lowest price
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