Gold, which often influences other precious metals, has also failed to capitalize on geopolitical tensions caused by military conflict between Russia and Ukraine and the rise of Islamic State in Iraq and Syria.
Cash gold had fallen 0.20% to $1,188.37 an ounce by 8:45 a.m. It earlier dropped to $1,183.4 an ounce, its weakest since June 2013.Silver fell to its weakest since 2010.
There’s a little bit of physical buying, but premiums haven’t changed. We have to see what happens later in the day. If demand is coming, of course, it will push up the premiums.
Premiums for gold were quoted at $1.20 to $1.60 an ounce to the spot London prices, unchanged from last week, despite a sharp drop in cash gold prices.
The absence of main gold consumer China is weighing on the physical market, which usually sees a hike in demand from jewelers and retail investors when prices fall.