Silver, Platinum, Palladium boosted by industrial demand indicators

LONDON (Bullion Street): Even as gold remained weak on less dovish than expected statement last week pushing US dollar upwards, silver and platinum group metals seemed to perform better on rising global industrial demand indicators, according to ETF Securities Ltd (ETFS). "In the longer-term, we remain constructive gold, but in the shorter-term it appears likely to remain in a relatively tight trading range; supported by solid physical demand below US$1,300 and constrained by investor selling on rallies near US$1,400."

Gold took the brunt of the selling in the precious metals sector as the US dollar rallied in line with rising bond yields. Strong US PMI and auto sales data also assisted the positive cyclical growth mood. 

Platinum group metals (PGMs) boosted by rising global industrial indicators and supply concerns
Platinum and palladium prices rose last week despite the headwinds caused by the fall in gold and silver prices. "We expect, however that the PGMs will continue to benefit from improving global economic growth prospects, increasing auto sales, and continued supply constraints in South Africa."

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