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Gold & Silver Rally, Crude Oil Falls on US-China Tensions

August 5, 2019 at 11:14 by Vladimir Vyun

Gold and silver rallied today amid risk aversion on markets. Investors were running for safety since US President Donald Trump made an unexpected announcement of new tariffs on Chinese goods. The outlook for Federal Reserve’s monetary policy was also helping the metals as CME FedWatch shows a 100% chance of another interest rate cut in September, just a month after the Fed made a dovish cut at the very end of July. Futures for delivery of gold in December advanced 0.87% to $1,470.20 per troy ounce as of 11:02 GMT on COMEX today. September silver jumped 1.54% to $16.52 per ounce.

Meanwhile, the escalating US-China trade tensions made crude oil fall. The commodity retained losses even after the news that Iran seized yet another tanker in the Gulf. Usually, signs of geopolitical conflicts in the Middle East help crude. But risk aversion did not allow oil to profit from the supportive news. Futures for delivery of WTI crude oil in September declined 1.02% to $55.09 per barrel on NYMEX. Brent crude for delivery in October dropped 1.16% to $61.17 per barrel on ICE.

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