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Gold Falls, Other Precious Metals Follow, as Dollar Rallies vs. Euro

June 7, 2017 at 17:24 by Vladimir Vyun

Gold fell together with other precious metals today as the dollar rallied versus the euro. The greenback got a boost from a report that the European Central Bank will downgrade its inflation forecast at tomorrow’s meeting. Bullion usually trades inversely to the US currency.

The drop of gold was limited as the cautious market sentiment ahead of Super Thursday made investors seek safe assets. In addition to the ECB policy announcement, there will be another two important events: the testimony of former FBI director James Comey to the Senate committee and the general election in the United Kingdom. Comey’s testimony may add to suspicions about the alleged ties between Donald Trump and Russia, making it harder for the US President to implement the planned reform, and may even lead to impeachment. As for Britain’s election, market participants were concerned that the voting may result in a hung parliament, weakening the position of UK Prime Minister Theresa May in Brexit negotiations with the European Union.

August futures for gold slipped 0.32% to $1,293.4 per troy ounce as of 17:12 GMT on COMEX today. July contract for silver lost 0.54% of its value to $17.62 per ounce. Spot price for platinum dropped 1.27% to $948.31, and palladium plunged as much as 2.26% to $836.49 per ounce.

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