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Several Reasons for Decline of Precious Metals

March 5, 2015 at 19:43 by Vladimir Vyun

Futures for gold traded lower today. Other precious metals declined as well. Recently though, metals trimmed their losses while silver managed to rise above the opening level. There were several reasons for the drop.

One of such reasons is the cut of China’s economic growth target by Premier Li Keqiang. The current target level of 7 percent would be the slowest rate of growth since 1990. It is bad news for all metals but especially for gold as the Asian nations is the second biggest user of the metal in the world.

Metals were also hit by the announcement of another round of asset purchases from the European Central Bank. The news made the dollar stronger, pushing dollar-priced commodities down as a result.

April futures for delivery of gold slipped 0.25 percent to $1,197.90 per troy ounce as of 19:36 GMT on COMEX today. Spot price for silver went down 0.16 percent to $1,180.75 per ounce, and palladium declined 0.33 percent to $824.70 per ounce. Meanwhile, contract for delivery of silver in May ticked up 0.07 percent to $16.17 per ounce.

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