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Gold & Other Metals Rally on Prospects of Monetary Easing

July 3, 2019 at 16:59 by Vladimir Vyun

Gold rose and other metals joined the rally today. The key reason for the rally were two nominations from US President Donald Trump for the vacant seats on the Federal Reserve Board. The 
nominees are Christopher Waller, the executive vice president at the Federal Reserve Bank of St. Louis, and Judy Shelton, an economic adviser to the president during his 2016 campaign. It is expected that they will have the same viewpoint as Trump regarding interest rates, specifically that the rates should be lowered.

Meanwhile, the European Council nominated Christine Lagarde, managing director of the International Monetary Fund, to replace Mario Draghi as the President of the European Central Bank. It is expected that she will preserve Draghi’s dovish stance and ultra loose monetary policy.

Prospects for lower interest rates, coupled with falling global debt yield and the threat of trade wars, made gold more attractive to investors.

Futures for delivery of gold in August gained 0.85% to $1,420.00 per troy ounce as of 16:48 GMT on COMEX today. September contract for silver added 0.60% to its value to trade at $15.33 per ounce. Spot price for platinum jumped 1.16% to $839.75 and palladium rose 0.64% to $1,573.16 per ounce. Copper for delivery in September advanced 0.62% to $2.6805 per pound.

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