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Gold, Silver, Copper Trade Slightly Lower During Slowing Trading

December 18, 2019 at 20:57 by Vladimir Vyun

Gold and silver were trading slightly below the opening level today. Copper was also hanging a bit below the opening. Platinum and palladium, on the other hand, demonstrated a radically different performance, with platinum rallying sharply and palladium posting huge losses. Overall, it looked like markets are entering a holiday mode, with trading becoming lighter and slower ahead of the Christmas and New Year holidays.

The week started poorly for gold and other safe assets as the United States and China achieved a phase-one trade deal, putting markets into a risk-on mode and limiting demand for a safe haven. In the longer term, though, there are plenty of reasons to worry, including the potential impeachment of US President Donald Trump and the threat of hard Brexit. That means bullion may yet find demand when investors feel need to seek refuge.

One of the most important factors affecting the yellow metal is the monetary policy of major central banks. The Federal Reserve and the European Central Bank confirmed their neutral stance last week, but there are several major banks left to make a policy decision this week. One of them is the Bank of England. Currently, the general consensus is that the BoE will leave its interest rates and the size of the asset-purchase program unchanged at tomorrow’s meeting. But with the looming threat of no-deal Brexit, many analysts believe that Britain’s central bank will have no choice but cut rates sooner or later. Comments made by policymakers after tomorrow’s meeting may reveal whether they think the same way.

Futures for delivery of gold in February were little changed at $1,480.1 per troy ounce as of 20:46 GMT on COMEX today. March contract for silver was basically flat at $17.07 per ounce. March copper slipped 0.07% to $2.8115 per pound. At the same time, spot price for platinum jumped 0.73% to $935.07 per ounce, while palladium tanked 1.56% to $1,925.14 per ounce.

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