By FXEmpire.com
Gold, Silver and Crude Oil React to China’s GDP
European markets traded on a negative note today as unfavorable GDP data from China led to rise in risk aversion in the global markets.
China’s Gross Domestic Product (GDP) grew at a slower pace in nearly three years by 8.1 percent in the first quarter of 2012 with respect to 8.9 percent in fourth quarter of 2011.
Additionally, Spain’s bond yield rose today after data indicating Spanish banks borrowed heavily from the European Central Bank in March which also acted as a negative factor for market sentiments.
Spot gold prices declined by 0.1 percent today on the back of strengthen in dollar index and choppy sentiments in the global markets. The yellow metal touched an intra-day low of $ 1669/oz and hovered around $ 1674/oz
Spot silver prices rose around 0.2 percent and touched an intra-day high of $ 32.38/oz. However, further gained were capped due to a stronger dollar index and downside in base metals.
Unfavorable GDP data from China increased demand concerns from the world’s largest metal consumer and this acted as a negative factor for base metals prices in today’s trading session.
Whereas, strength in the US dollar index and mixed sentiments in the global markets also exerted further downside pressure on metal prices.
Crude oil prices declined by 0.2 today on the back of weak GDP data from China coupled with mixed sentiments in the markets. A stronger dollar index also exerted
further downside pressure on prices. Crude oil touched an intra-day low of $ 102.86/bbl and hovered around $ 103.41/bbl. Crude Oil rose around 0.4 percent
Taking cues from this, precious metals and base metals are expected to trade with a negative bias throughout the US session. Silver being an industrial metal will also take cues from movement in base metals.
Crude oil prices are expected to trade lower today, on the rise in OPEC production, unfavorable GDP data from China and a stronger dollar index.
Originally posted here
