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Gold & Silver Retreat Ahead of Trump Speech

March 1, 2017 at 0:06 by Vladimir Vyun

Gold and silver fell on Tuesday as traders were waiting for the speech of US President Donald Trump to the Congress. Additionally, the dollar bounced after the initial decline, putting pressure on commodities priced in the US currency. Market analysts said, though, that upward momentum of the yellow metal looks strong enough for gold bulls not to be bothered by a small decline, which at the present time does not look anything more than just a small correction.

Yet there is big danger for gold (and other precious metals) from prospects for an interest rate hike from the Federal Reserve in the near future. In fact, Fed officials were saying that a rate increase may happen as soon as March. And indeed, the CME FedWatch tool shows a 62% chance of a March hike at present, while just recently it was barely above 30%.

Future for delivery of gold in April fell 0.41% to $1,248.7 per troy ounce as of 23:48 GMT on COMEX today. May contract for silver declined 0.64% to $18.35 per ounce.

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