GOLD & SILVER CONTINUE TO BE BEARISH

Silver today slid to the lowest since September 2010, while gold extended the longest slump in four years as investment holdings contracted and stocks rallied. Silver fell 8.6 per cent to USD 20.33 an ounce. Gold slid 1.5 per cent to USD 1,338.85 an ounce, the lowest since April 18. Prices were down for an eighth session, the worst run since March, 2009. Silver slumped 29 per cent this year, making it the worst- performing precious metal, on concern that industrial use isn’t strong enough at a time when demand is waning for a protection of wealth. Silver held in exchange-traded products dropped to a four-month low on May 17, while hedge funds increased bets on lower prices by the most since March in the week to May 14. Global equities reached the highest since June 2008.
An ounce of gold bought as many as 64.89 ounces of silver, the highest since August, 2010. Gold tumbled 19 per cent this year, falling into a bear market last month, as some investors lost faith in the metal as a store of value and equities rallied on confidence that the US economy is improving. US data showed last week consumer sentiment and an index of leading indicators topped estimates, while Federal Reserve Bank of San Francisco President John Williams said the central bank may begin to cut monthly bond purchases from as early as this summer. Silver, used in products from solar panels to batteries, also entered a bear market in April. Global photovoltaic installations rose at their slowest pace in at least six years in 2012. Holdings in silver-backed ETPs dropped 70.6 tonnes to 19,299.2 tonnes, the lowest since Jan. 16. Gold-backed ETP holdings fell 8.9 tonnes to 2,198.3 tonnes, the lowest since July, 2011.