Cyclical precious metals hurt by weaker-than-expected Chinese data. Although most of the price movement in cyclical precious metals last week was led by their correlation to gold, weaker-than-expected GDP and industrial production data from China pushed silver, platinum and palladium further as investors revised their views about China’s industrial demand for these metals.
Key events to watch this week. The widening divide in growth between the US and the Eurozone is again likely to be highlighted this week, with Eurozone manufacturing indicators expected to show the sector firmly in contraction territory. In contrast, US Q1 GDP is expected to show the world’s largest economy grew by 3% annualized over the period. As highlighted in the G20 statement, ongoing policy uncertainty and fiscal sustainability are key constraints to growth and this divide is unlikely to be bridged in the foreseeable future.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
