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Gold Falls After Fed Policy Announcement, Other Metals Follow

May 3, 2017 at 20:03 by Vladimir Vyun

Futures for gold declined today after the Federal Reserve decided to keep its monetary policy unchanged, but made some optimistic remarks about the US economy in the statement. It led market participants to believe that the Fed is on track to continue tightening monetary policy — a prospect that is very bearish for gold. Currently, CME FedWatch shows about 75% probability of an interest rate hike in June.

Silver and copper, as well as other metals, followed in the decline. Being the metals used in industry, they were also under pressure from underwhelming economic data released from China earlier this week. Both official and private reports showed slower growth of China’s manufacturing, meaning smaller demand for metals from the world’s second biggest economy.

Futures for delivery of gold in June dropped 1.05% to $1,243.8 per troy ounce as of 20:01 GMT on COMEX today. July silver declined 1.79% to trade at $16.53 per ounce. Copper for delivery in July tumbled as much 4.43% to $2.5215 per pound.

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

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