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Gold Struggles to Find Direction on Dollar Weakness, Rosenstein Reports

September 24, 2018 at 18:55 by Andrew Moran

Gold futures are struggling to find direction to start the trading week. The yellow metal has been seesawing back and forth on a weakening greenback, reports of Deputy Attorney General Rod Rosenstein’s exit, a central bank policy meeting, and the ongoing US-China trade war.

December gold futures tacked on $2.60, or 0.22%, to $1,203.90 per ounce at 19:24 GMT on Monday. The yellow metal surged as much as $8 before paring those gains throughout the afternoon trading session. Last week, gold prices posted their first weekly gain in a month, though it fell sharply on Friday.

Silver, the sister commodity to gold, is shedding its value to kick off another week of trading. December silver futures slipped $0.045, or 0.32%, to $14.31 an ounce. The white metal recorded an impressive 2% weekly gain last week, but it is still down 17% so far in 2018.

Precious metals were climbing higher on a tumbling US dollar, which dipped as much as 0.4%, but pared those losses in half. A weaker buck is good commodities pegged in dollars because it makes it cheaper for foreign investors to purchase.

Financial markets traded lower on Monday on reports that Deputy AG Rod Rosenstein is either getting fired by the White House or he is submitting his resignation. But it was later reported that Rosenstein will meet with President Donald Trump at the White House on Thursday to discuss the conflicting reports.

The metals market has already penciled in a move on interest rates by the Federal Reserve. The central bank will conclude its two-day Federal Open Market Committee (FOMC) policy meeting on Wednesday. According to the CME Group FedWatch tool, there is a 99% chance of a rate hike. The market consensus is that the Fed will move ahead with a December rate hike, though some investors are citing the trade war and global economic bumps as reasons the Fed may blink later this year.

Despite gold unable to take advantage of the escalating trade tensions between the world’s two largest economies, the precious metal may have finally received a boost on reports that Beijing canceled trade negotiations with Washington.

In other metal commodities, September copper futures slid $0.05, or 1.7%, to $2.7 per pound. December platinum futures were flat at $829.20 an ounce. December palladium futures jumped $5.30, or 0.51%, to $1,050.20 per ounce.

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