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Dollar’s Weakness Benefits Gold & Silver

June 27, 2017 at 21:14 by Vladimir Vyun

Gold and silver rally today on the back of the dollar’s weakness. The rally was limited, though.

There were several key reasons for the greenback’s drop. The first one was the relatively hawkish comments from European Central Bank President Mario Draghi, which sent the euro up and the dollar down. The speech of Federal Reserve Chairwoman Janet Yellen did nothing in terms of providing support for the US currency. Meanwhile, US senate postponed a planned vote for healthcare bill, and that damaged the embattled dollar even further.

Gold usually trades inversely to the US currency, thus it rallied today along with silver. Over longer term, doubts about the ability of Federal Reserve to continue its monetary tightening should keep the dollar in check, therefore helping the precious metals. Today’s speech of Janet Yellen did not provide additional insights into Fed’s plans.

Futures for delivery of gold in August advanced a bit by 0.07% to $1,247.3 per troy ounce as of 21:02 GMT on COMEX today. September silver gained 0.29% to $16.68 per ounce.

If you have any questions and comments on the commodities today, use the form below to reply.

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