The prices of precious metals (PMs) have fallen sharply since mid-July as sentiment towards commodities in general plummeted. A further slump in Chinese equities and unexpectedly weak Chinese PMI numbers added to demand concerns for Platinum Group Metals (PGMs). Meanwhile, the prospects of the first rate hike by the Fed prompted a downward correction in gold and silver prices. However, the technical outlook and investor sentiment, albeit still quite negative, are showing signs of improvement from last month, underpinning our view that the worst should be behind us. What’s more, the gold market at least appears to have adjusted to the prospects of a September rate hike.
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