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Gold Posts Losses, Other Metals Fare Well

April 20, 2020 at 7:33 by Vladimir Vyun

Futures for gold logged mild losses today, though they have trimmed them by now. It is interesting to note that gold was the only precious metal to post losses today, with other metals demonstrating solid gains, and even copper joining the rally.

Analysts offered various reasons for the poor performance of the yellow metal at the start of the trading week. Some blamed the relatively strong US dollar for knocking down prices for gold. Others speculated that investors were waiting for countries around the world to lift lockdown and reopen businesses, limiting safe-haven demand for bullion. The decline of gold prices was not a surprise as analysts were predicting a pullback on Monday.

Over the longer term, though, experts remain largely bullish on gold. The global economy will likely be in a dire state after the pandemic subsides, increasing the appeal of bullion as a refuge. Low interest rates across the world will also increase the competitiveness of the commodity with other assets. Forecasts for the gold price range from modest $1,800 to $2,000 or even higher. Other precious metals will likely fare worse due to the industrial component in their usage, which will make them less appealing during the probable global recession.

Futures for delivery of gold in June dropped by $5.9 (0.35%) to $1,692.9 per troy ounce as of 7:26 GMT on COMEX today. July contract for silver rose by $0.05 (0.29%) to $15.49 per ounce. Spot price for platinum climbed by $5.81 (0.75%) to $782.46 per ounce, while palladium surged by $49.32 (2.28%) to $2,215.64. Copper for delivery in July added $0.003 (0.13%) to its value, trading at $2.36 per pound.

If you have any questions and comments on commodities today, use the form below to reply.

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