Precious metals sentiment was on the back foot throughout the European and New York sessions following some fund buying support in Asia. With few economic data releases yesterday, precious metals markets initially traded higher on technical buying signals in Asia (most metals had started the day from an oversold position). Thereafter, markets took their cue from the oil price and US dollar movements against the euro. Notably, platinum shed 5.03% as the dollar rallied to a high of $1.4687 against the euro.

Crude oil valatility kept precious metals market sentiment uncertain. Investment sentiment gained support as WTI crude oil prices rose to $115/bbl on fears of supply disruptions by tropical storm Fay in the Gulf of Mexico. Prices then fell to $111/bbl as the storm was forecast to miss the Gulf - driving precious metals down ahead of the New York close. In the wake of benign inflation statistics, loan quotas are due to be increased in China to support infrastructure spending and economic growth. This should boost crude oil demand, which could see oil prices regain support. This should support medium - to long-term precious metal investment demand. However, today, market sentiment could remain cautious.

After fund buying lifting prices  to an intraday high of $1.447, platinum plummeted to $1,380 in London as oil prices eased and the greenback strengthened against the euro. PGM sentiment remains negative as motor vehicle sales have been slackening. The metal closed at $1,390 in New York after trading range-bound for most of the afternoon. More bearish sentiment resulted in platinum shedding a further $67 overnight. The German ZEW economic sentiment index is due for release today - a decline should raise further fears on Eurozone growth, which should bode ill for the metal's industrial demand. Palladium tracked platinum lower, and remained under heavy selling pressure. It closed at $285 in New York. Rhodium continued its downward trend, and fixed at $4,830.

Gold opened at $789 in Asia and was supported to $804 in London before plummeted to $786 at the PM fix. Prices were range-bound between $800 and $790 before closing at $801 in New York. Technical signals should again dominate activity today - in New York, investors will be able to take clues from US PPI statistics. Support for gold is at $784, with $778 - $763 providing secondary support. Primary resistance is at $799 - $808, and secondary resistance at $823.