Teck Resources (TSE:TCK-B) has dropped today as a growing number of negative economic indicators and situations make it highly unlikely raw material demand will strengthen in the short term.
The ongoing worries and fears over China, Europe and the United States has investors running for safety.
While the European sovereign debt crisis and China battling inflation were bad enough, the jobs report release that revealed the U.S. private sector was doing very little hiring weakened the economic outlook even further, which nowhere to go to find a place where demand for materials, goods and services was rising unimpeded.
There will be a resumption in demand sometime, but that is increasingly looking like it's much further out into the future than being spun by governments and the mainstream economic media.
Most precious metals will remain under pressure until that changes.
No comments:
Post a Comment