UNITED STATES December 27 2015 11:29 AM
NEW YORK (Scrap Register): The slump in oil prices during 2015 has weighed on the precious-metals complex two ways, said Metals Focus.
“First, investor demand for gold and, to a lesser extent, silver as an inflationary hedge – including expectations of future price rises -- has all but disappeared,” the consultancy said in a weekly commentary.
“This added to investor disillusion towards gold, in particular, which, over the first five (to) six months, generated little safe-haven demand, despite the Greek debt, Middle East and CIS (Commonwealth of Independent States) crises, said the analysts at Metals Focus.
“The second impact of weak oil prices has been on sentiment towards the global economy, which had already been undermined by the equities correction in China, itself the result of growing fears of a hard landing there,” they added.
As a result, industrially oriented metals have seen widespread liquidation, including platinum and palladium, the consultancy adds.