Precious metals languished in Europe yesterday after slipping sharply in Asian trade, as oil prices slipped and the US dollar rallied to a fresh six-month high against the euro.
Platinum dropped more than six per cent, gold by more than two per cent and silver by five per cent earlier in the session as Asian traders sold off the metals. Benchmark Tokyo platinum futures fell by their daily limit to a one-year low.
"Platinum closed in New York last night around $1,390 and this morning we hit a low below $1,300," said Afshin Nabavi, head of trading at MKS Finance.
"That was the main reason for everything else coming off quite sharply."
Gold and silver prices tracked platinum lower, pressured by oil and the dollar. Gold slipped to a session low of $782.05, before ticking back up to trade at $793.70/794.70 an ounce against $799.65/801.05 late in New York on Monday.
Silver slipped to $12.96/13.02 an ounce yesterday from $13.07/13.13 an ounce, having earlier touched a low of $12.45.
Gold prices have hit good support at $775 an ounce and should hold this level as interest in physical gold from jewellers is stoked by lower prices. Buying has picked up sharply in the last week as prices have fallen, metal traders said.
The white metal is coming under pressure from fears slowing economic growth could dent demand from the automotive industry, which consumes more than half of the world's platinum.
Lower crude prices tend to pressure gold in particular, both because it is often bought as a hedge against oil-led inflation and because weakness in oil dents interest in commodities as an asset class.
The firmer dollar is also weighing on interest in gold, which is often bought as a hedge against weakness in the US currency.