Palladium Falls Most in Seven Months on Global Economic ConcernsWhitney McFerron and Laura Clarke
Palladium futures slid the most in seven months and silver fell from a four-week high as concerns of a global economic slowdown spurred a rout in metals used in industrial products. Gold touched the highest since October.
The Bloomberg Commodity Index of 22 raw materials slid to a 12-year low today, led by a plunge in copper, after the World Bank cut its forecast for global growth this year. Palladium is mostly used with platinum in catalytic converters that help curb harmful emissions from cars, while silver goes into items ranging from electronics to solar panels.
“It looks like spillover from the industrial metals more than anything,” James Moore, an analyst at FastMarkets Ltd. in London, said by phone. “Traditionally silver has got some ties to price sentiment in the base metals, particularly with the likes of copper and zinc.”
Palladium futures for March delivery dropped 4.3 percent to settle at $780.65 at 1:07 p.m. on the New York Mercantile Exchange, the biggest drop for a most-active contract since June 12. Platinum futures for April delivery declined 0.7 percent to $1,239 an ounce.
Aggregate palladium trading was 79 percent more than the 100-day average, according to data compiled by Bloomberg.
Silver futures for March delivery fell 1 percent to $16.988 an ounce on the Comex in New York, after tumbling as much as 3.5 percent. Yesterday, the price touched $17.215, the highest since Dec. 12.
The world economy will expand 3 percent in 2015, down from a projection of 3.4 percent in June, the World Bank said.
“The subdued outlook for economic growth is perceived as being negative for commodity prices,” Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, said by e-mail.
Gold futures for February delivery rose less than 0.1 percent to $1,234.50 an ounce on the Comex, after reaching $1,244.60, the highest since Oct. 23.