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Gold Steady, Other Metals Fall, Dragged Down by US Dollar

October 4, 2018 at 17:25 by Vladimir Vyun

Gold was steady today, while other metals fell. Market analysts speculated that the weak performance of the metal market was the result of the relatively strong dollar. The currency was getting support from positive macroeconomic data and rising yields for 10-year government bonds. With that said, the Dollar Index rose just a bit by 0.04% to 95.8040.

Experts say that the main headwind for gold going forward will be rising interest rates. Federal Reserve Chairman Jerome Powell said yesterday that the Fed may increase rates beyond the neutral levels. Higher borrowing costs reduce attractiveness of non-yield bearing assets, like commodities.

December contract edged down a bit by 0.07% to $1,202.1 per troy ounce as of 17:10 GMT on COMEX today after attempting to rise earlier. Futures for silver dropped 0.48% to $14.6 per ounce. Spot price for platinum declined 0.44% to $822.08 per ounce, and palladium fell 0.33% to $1,055.73 per ounce. Copper for delivery in December sank as much as 1.98% to $2.778 per pound.

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