Will Chinese Tightening Affect Precious Metal Demand?

Mineweb reported that there was another hike in interest rates from the Chinese government, with another 25 basis point hike to a lending rate of 6.06% as the Government extends its battle against inflation.

The article states:

The base metals came down on the news of China’s rate hike, while the platinum group metals hiccupped slightly, but regained their composure relatively rapidly.  GFMS, in its Survey of the platinum and palladium industries, strips out Chinese demand in the jewellery and automotive sectors and these two are clearly the giants when it comes to domestic PGM offtake.

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