Platinum Price Falls to 1-Month Low as Silver Drops on China Concerns
London (Sept 14) Platinum sank to a one-month low and silver retreated on concern slowing growth in China will reduce demand for the metals.
The Shanghai Composite Index slumped the most in three weeks as data over the weekend added to concern the economic slowdown is deepening and traders gauged the level of state support for equities. Industrial output missed economists’ forecasts, while investment in the first eight months increased at the slowest pace since 2000.
“The problem with platinum and silver, distinct from gold, is the weakness in China,” Neil Meader, a London-based precious metals consultant at Metallis Consulting Ltd., said by telephone. “If you see such worry over one of the key sources of demand, you’re bound to see prices decline.”
Platinum for immediate delivery slid for a fourth day, the longest run in a month. The metal was 1.1 percent lower at $959.42 an ounce as of 12:20 p.m. in London, and earlier touched the lowest since Aug. 7.
Silver lost 1 percent to $14.4615. Palladium dropped 0.7 percent to $591.15 an ounce. Silver is widely used in solar panels, while platinum and palladium are often found in industrial machinery and pollution-control devices for cars.
è Platinum and silver prices have been hurt by worries over Chinese demand.
square before the information Platinum and silver prices have been hurt by worries over Chinese demand.
Gold traded near a one-month low on light volumes before the Federal Reserve’s interest-rate decision later this week. The metal slid 0.2 percent to $1,106.11 an ounce in London, according to Bloomberg generic pricing. The trading volume was 41 percent below the 100-day average for the time of day on the Comex in New York.
“Gold seems to have priced in a December, rather than a September, U.S. interest rate rise,” David Wilson, an analyst at Citigroup Inc., said by phone from London. “If the market sees a surprise hike on Thursday, gold could be sent tumbling.”
Holdings in global exchange-traded products backed by bullion dropped for six days through Friday and were the lowest in three weeks, according to fund data compiled by Bloomberg.