Limited scope for further falls in prices

Over the past month, precious metal (PM) prices have slumped as the correction in equity prices in China damaged confidence in global commodity markets while investors shrugged off the threat that Greece might leave the euro-zone. Indeed, we recently revised down our price forecasts for gold, silver, platinum and palladium to reflect the lower starting point. The technical outlook and investor sentiment have sharply deteriorated since mid-June, but the potential for further price falls should now be limited.