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Metals Extend Decline as Dollar Rallies amid Trade War Threat

July 2, 2018 at 16:29 by Vladimir Vyun

Prices for metals, both precious and industrial, declined today as the US dollar rallied. The greenback profited from its role as a safe haven as trade tensions between the United States and their trading partners continued to escalate. The USA talked about plans to target European cars with tariffs, and the European Union threatened to respond with similar measures, slapping additional duties on US auto imports. As it often happens, stronger US currency means lower prices for dollar-denominated commodities.

Metals used for industrial needs had additional negative factor in the form of slowing growth of the Chinese manufacturing sector. China, being the world’s second biggest economy, consumes a lot of metals, therefore performance of its industrial sector has a big impact on the raw materials. In particular, the Asian nation accounts for almost a half of global consumption of copper.

Futures for delivery of gold in August declined 0.75% to $1,245.1 per troy ounce as of 16:15 GMT on COMEX today. September contract for silver lost 1.87% of its value to $15.9 per ounce. Spot price for platinum sank as much as 3.47% to $823.71 per ounce. Palladium tumbled 1.58% to $940.35 per ounce. Copper for delivery in September declined 1.2% to $2.9305 per pound.

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