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Gold Gains, Other Metals Fare Far Worse After Fed Minutes

October 18, 2018 at 18:49 by Vladimir Vyun

The market of metals demonstrated mixed performance today as gold gained, while palladium was flat, silver and platinum fell, and copper showed especially big losses. Bullion managed to carve out gains even as the US dollar rose against most of its major peers following the hawkish policy minutes of the Federal Reserve released on Wednesday. Some analysts explained the good performance of gold by the big losses of US stocks, which increased the attractiveness of the precious metal as a safe haven.

The minutes of the Fed meeting in September, which resulted in an interest rate hike, were hawkish, suggesting more hikes down the road. Specialists were divided over how that will affect gold. While many argued that high interest rates are a traditional enemy of the metal, others insisted that the Fed has not much room for raising rates further in the near future, and prices for gold should climb after market participants realize that.

Futures for delivery of bullion in December advanced 0.2% to $1,229.8 per troy ounce as of 18:33 GMT on COMEX today. At the same time, the most actively traded contract for silver declined 0.46% to $14.6 per ounce. Spot price for platinum fell 0.51% to $828.31 per ounce, while palladium was almost flat at $1,073.55 per ounce. December copper sank 1.57% to $2.7345 per pound.

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