Profit Taking Sends Precious Metals Lower
Following yesterday’s devastating terror attacks in Belgium, risk sentiment improved in overnight trading, spurred by an improved economic outlook in China, precious metals were lower in overnight Asian trading.
The deadly terror attacks which hit a metro station and an airport in Belgium sent investors fleeing to the safe haven investments of precious metals with Gold and Silver both posting strong increases in the European and North American trading sessions.
However, the release of a Thomson Reuters/INSEAD survey last night showed that sentiment amongst some of the biggest companies in Asia improved in the first quarter of this year, increasing from the four-year low recorded in the last quarter of 2015. The improved sentiment was primarily due to executives having a better outlook with regards to China.
The improved risk sentiment meant investors cashing in on yesterday’s gains made in precious metals. At time of writing, Gold was down 0.96%, trading at $1236.30 a troy ounce, whilst Silver was down 0.76%, trading at $15.735 an oz.
Today will see the release of the US New Home Sales Data at 14.00 GMT which is expected to have an impact upon the US Dollar and may decide if the decline in Gold continues throughout the day. Gold normally trades inversely to the greenback, which means that when the US Dollar strengthens, Gold becomes a more expensive and less attractive investment.
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