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Gold Gets Hit by Rising US Dollar, Underpinned by Demand for Safety

March 15, 2018 at 17:02 by Vladimir Vyun

Gold and other precious metals dropped today as the US dollar was rising. The greenback got boost from today’s US macroeconomic data that was positive for the most part. Additionally, market participants were almost universally counting on an interest rate hike from the Federal Reserve next week. Gold usually trades inversely to the US currency and tends to react negatively to higher borrowing costs.

Despite all the negative factors, bullion was underpinned by political tension. The United States expressed intention to go to a trade war with China. Meanwhile, relationships between the United Kingdom and Russia soured as Britain was accusing Moscow of involvement in the poisoning of former Russian spy.

Futures for delivery of gold in April declined 0.71% to $1,316.2 per troy ounce as of 16:49 GMT on COMEX today. May contract for silver dropped 0.74% to $16.42 per ounce. Spot price for platinum also declined 0.74% to $954.75 per ounce, while palladium fell 0.45% to $985.34 per ounce.

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