Gold: Yellow metal has been an exception to gain slightly by 0.3% yesterday but could not sustain and is trading at just shy of $1,080 per troy ounce this morning, finding support from the weaker US dollar.
Good thing is that there were slight inflows into the gold ETFs tracked by Bloomberg again yesterday for the first time in 14 days of trading but we think is also not suffice for golds recovery.
Maybe little puzzled...? perhaps not, Yes on the contrary, India's physical gold demand seems shrinking currently: gold prices in India are trading at a discount to world market prices again for the first time since the beginning of November.
Meanwhile, the high coin sales of the previous month do not seem to be continuing in the US - the U.S. Mint has sold no gold coins at all and only very few silver coins so far in December.
Platinum and palladium: These metals dropped by just shy of 1% each to around $850 and $550 per troy ounce respectively yesterday.
The precious metals, which are used primarily in the automotive industry, thus ignored news from China that the government plans to roll out a nationwide car buying incentive scheme.
According to industry sources, consumers in rural regions will be encouraged to buy cars with low gasoline consumption. Hopefully, this would cause increase in demand and prop the prices of these precious metals.
