Although platinum is among the rarest and most precious metals to be found, the renewed rears over the outlook for global growth increased demand on safe haven, which determined gold to become more expensive than platinum.
With a new global financial crisis being just around the corner, investors continue leaving the stock markets heading towards gold and the safe haven currencies like the yen and CHF.
Gold jumped to a new record high today at $1772.00 per ounce and as of this writing is trading around the $1750.00 level while platinum is trading around $1725.00 per ounce.
It was a black day for the global stock markets yesterday after the U.S. witnessed its first ever credit downgrade to AA+ from AAA, which fueled fears of a possible global downturn.
The S&P 500 lost 6.7%, the most since December 2008, while the Dow Jones witnessed on Monday its sixth-worst decline in 112 years. Shares in Asia and Europe fell today.
It was the eighth day of losses in Europe, the longest losing streak since 2003, as investors are also worries from Italy and Spain walking in the footsteps of Greece, Ireland and Portugal that fell victims to the sovereign credit crisis.
The ECB bought on Monday billions of euros worth of Italian and Spanish bonds, indicating a contagion became more probable. Today Germany released a disappointing trade balance report for June.
U.K. released a weak manufacturing and industrial production report and a disappointing trade balance report for June. However the pound is moving in a limited range with an upside bias around the 1.6335 as the USD is weakening.
Markets are now eyeing the Feds rate decision later in the day. Ben Bernanke may step out to restore confidence and announce a third quantitative easing program soon. This is weakening the dollar index which is trading around 74.60.
China also made news today, since inflation rose by the fastest pace in three years during July, by 6.5% from 6.4% previous. This could limit China’s attempts to support growth, and a weaker global recovery has become more possible.
Therefore the yen strengthened today and as of this writing is trading around the 77.20 level. Oil meanwhile fell below the $80.00 per barrel level and now is trading around $78.45 per barrel.
This morning crude oil fell to the lowest of $75.50, after fears the U.S. will fall into another recession triggered a global selloff in equities and commodities. Today things might not look better either, since fears and caution will persist.