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Gold Retreats Despite Weaker US Dollar

September 13, 2018 at 17:13 by Vladimir Vyun

Gold fell today after attempting to rally earlier on the back of the US dollar’s weakness. The greenback declined after US inflation missed expectations. While usually weaker dollar means higher prices for gold and other precious metals priced in the US currency, today it was not the case.

Analysts speculated that the reason for bullion’s underperformance was uncertainty about whether the United States and China are going to resume trade negotiations. The potential trade wars have mixed impact on gold. On one hand, resulting risk aversion increases demand for safer assets, like bullion. On the other, China is the world’s biggest consumer of the metal, and the possible negative impact from the trade conflict in the Chinese economy may seriously hurt demand for gold.

Contract for delivery of gold in September fell 0.16% to $1,209 per troy ounce as of 16:58 on COMEX today. Contract for silver declined 0.3% to $14.25 per ounce. Other metals fared much better. Spot price for platinum was little changed at $800.07 per ounce, while palladium gained 0.32% to $980.95 per ounce. Copper for delivery in December advanced 0.49% to $2.689 per pound.

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

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