Metals market update for December 11

Today’s AM fix was USD 1,219.50, EUR 980.94 and GBP 778.24 per ounce.

Yesterday’s AM fix was USD 1,228.25, EUR 991.88 and GBP 783.82 per ounce.

Spot gold fell $2.20 or 0.18% to $1,227.40 per ounce yesterday and silver climbed $0.04 or 0.24% to $17.08 per ounce.

Gold in Singapore ticked marginally lower and this trend continued in London. Gold is down from Wednesday’s seven-week high as the dollar and European shares firmed, leading to a decline in a safe haven bid for gold.

The precious metal is still on track for a 2.6% weekly gain so far, its strongest since mid-October, as safe haven demand and short covering have given support.
 



Gold remains just below its highest in more than six weeks as investors weighed the possibility of deflation contributed to by falling energy prices against signs of rising demand.

Chinese demand saw volumes on the Shanghai Gold Exchange (SGE) for gold of 99.99% purity rise for a second day yesterday to 28,152 kilograms. This is the highest since November 18 in the world’s biggest gold buyer.

An improvement in sentiment was seen in the holdings of SPDR Gold Trust, the world's largest gold exchange-traded fund. The fund saw inflows of nearly 3 tonnes on Wednesday, bringing total holdings to 724.80 tonnes.

Silver continues to consolidate above $17 per ounce, while platinum rose 0.4 % to $1,238.25 an ounce and palladium gained 0.5% to $814.70 an ounce - the highest level since September.