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Gold & Other Precious Metals Sink on US-China Trade Talks, Copper Rallies

September 5, 2019 at 17:31 by Vladimir Vyun

Gold tanked today. Other precious metals joined the decline, showing significant losses as well. Palladium was an exception, managing to carve out reasonable gains. The major piece of news today was the report that the United States and China are going to resume their trade negotiations. While no specific date was set, sources talked about “early October”. That was enough to make traders seek higher-yielding risky assets, eschewing safer ones like bullion.

The same optimism can explain the rally of copper. China is the biggest consumer of the industrial metal, meaning that good news for the Asian country means prospects for higher demand for copper.

Positive US macroeconomic reports also weighed on gold. Automatic Data Processing reported that US employment rose by almost 200,000 last month, and the Institute for Supply Management reported that the US services sector was expanding with sharply accelerating pace.

Futures for delivery of gold in December dropped 2.11% to $1,527.40 per troy ounce as of 17:25 GMT on COMEX today. Contract for silver tanked as much as 3.51% to $18.86 per ounce. Spot price for gold tumbled 2.14% to $965.31 per ounce. At the same time, palladium edged up 0.36% to $1,564.19 per ounce. Copper for delivery in December jumped 1.62% to $2.6370 per pound.

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