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Gold & Other Precious Metals Rally on Interest Rate Cut Anticipation

July 18, 2019 at 20:07 by Vladimir Vyun

Gold rallied today after the US dollar weakened in anticipation of an interest rate cut from the Federal Reserve at the end of this month. Other precious metals joined the rally except for palladium.

The Fed will make its monetary policy announcement on July 31. The CME FedWatch page shows that markets consider a rate cut basically guaranteed. Furthermore, markets price in about 70% chance of a 50 basis point cut. And on top of that, chances for another cut by the end of the year are almost 80%.

The dollar also weakened after the International Monetary Fund signaled that the currency is overvalued.

Futures for delivery of gold in August jumped 1.76% to $1,448.30 per troy ounce as of 20:02 GMT on COMEX today. September silver surged as much as 2.47% to $16.36 per ounce. Spot price for platinum rose 0.95% to $852.75 per ounce. At the same time, palladium dropped 0.65% to $1,527.10 per ounce.

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