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Gold & Other Precious Metals Rally as Risk Appetite Wanes

June 12, 2019 at 11:10 by Vladimir Vyun

Gold and other precious metals were rising today as risk appetite was waning, making safer commodities more appealing to traders. While the resolution of the US-China trade conflict is nowhere in sight, markets demonstrate little reaction to news about it. Such weak reaction suggests that market participants grew weary of the conflict and are starting to prefer to ignore it.

Instead, investors are looking at macroeconomic data. China’s consumer inflation accelerated last month, but the core components of the Consumer Price Index (excluding food) demonstrated a very slow growth. Producer inflation decelerated in the meantime. The lackluster indicators were worrying and added to incentive to buy safe assets.

Now, traders shift their attention to US inflation data. Released yesterday, producer inflation demonstrated slowdown. Consumer inflation due for release at 12:30 GMT today is expected to demonstrate slowdown as well. It would add pressure on the Federal Reserve to cut interest rates.

Futures for delivery of gold in August rose 0.62% to $1,339.4 per troy ounce as of 11:05 GMT on COMEX today. July contract for silver added 0.34% to its value to $14.79 per ounce. Spot price for platinum rose 0.22% to $817.13 per ounce, and palladium gained 0.18% to $1,396.1 per ounce. Copper, being industrial metal, did not join the rally, plunging 1.25% to trade at $2.638 per pound.

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