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Metals Decline as Dollar Rebounds

January 10, 2019 at 22:19 by Vladimir Vyun

Metals declined today due to the rebounding US dollar. While the currency fell yesterday on dovish monetary policy minutes released by the Federal Reserve, the greenback managed to rebound today thanks to hawkish comments from Fed Chairman Jerome Powell. That put pressure on commodities priced in the US currency. Nevertheless, CME FedWatch shows 65% probability that interest rates will stay unchanged by the end of the year. The outlook for no hikes in 2019 can yet hurt the dollar and provide support for the market of metals.

Copper had additional negative factor in the form of US-China trade dispute. US delegation is visiting the Asian nation in an attempt to find a compromise. The Chinese commerce ministry said that the talks “established a foundation for the resolution of each others’ concerns.” But markets are becoming increasingly skeptical about the outcome of the meeting as no specific details have been revealed yet.

Contract for delivery gold in February declined 0.4% to $1,286.8 per troy ounce as of 22:03 GMT on COMEX today. March silver dropped 0.89% to $15.6 per ounce. Spot price for platinum fell 0.66% to $820.35 per ounce, while palladium was down just a little by 0.08% to $1,325.03 per ounce. Copper for delivery in March dropped 0.81% to $2.6355 per pound.

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

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