A sharp decrease in futures on gasoline caused a temporary suspense in NYMEX trading with futures on energy sources following an unexpected growth of the US reserves. This fall influenced prices for precious metals because traders who suffered losses from correction of prices for raw materials last week were selling their assets.
By the end of COMEX trades quotations of July futures on silver declined by USD 2.971 (7.7%) down to USD 35.515 per ounce.
May futures on silver dropped by USD 2.971 (7.7%) and equaled USD 35.509. Quotations of June futures on gold lost USD 15.50 (1%) and constituted USD 1501.40 per ounce. May futures on gold cheapened by 1% and equaled USD 1501.10.
Prices for silver showed a gradual decline on Wednesday, as rumours over Portugal likely to be forced to swap its reserves stored in precious metals for the EU financial assistance caused speculative sells. Portugal has been experiencing hardships in fulfilling its debt obligations and facing a weak economic growth for the recent months.
Futures on silver also dropped due to a downwards tendency and futures approaching the level of USD 40 forced technical traders to fix their profits which pushed the prices down.
The declining gold prices were restrained by a higher than usually level of inflation in China. The Chinese CPI grew in April by 5.3% as compared to a rise of 5.4% in March last year. Economists had forecasted ma growth of 5.2%.
Investors consider gold to be a means of saving and a toll of hedging against inflation. This metal is growing increasingly attractive when inflation is on increase.