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Metals Gain As Dollar Index Declines

July 25, 2018 at 16:51 by Vladimir Vyun

Gold and other metals rallied today. Some market analysts explained the rally by profit-taking after the recent steep sell-off. Others pointed at the soft US dollar as the main driver for the good performance of the metal market.

The Spot Dollar Index slipped a bit by 0.04% today. Experts speculated that today’s soft US macroeconomic data was the reason for the dollar’s weakness. The Wednesday’s session was light on economic reports, but the one that was released turned out to be disappointing. The US Commerce Department reported that new home sales fell 5.3% to the seasonally adjusted annualized rate of 631,000 homes in June from the May’s negatively revised reading of 666,000. That is compared to the forecast value of 669,000.

Specialists were also naming uncertainty about the outcome of the meeting between US President Donald Trump and European Commission President Jean-Claude Juncker as the possible reason for the dollar’s underperformance.

Whatever the cause, commodities priced in the US currency benefited from its weakness.

Futures for delivery of gold in December advanced 0.31% to $1,238.4 per troy ounce as of 16:37 GMT on COMEX today. September silver rose 0.26% to $15.56 per ounce. Spot price for platinum rose 0.24% to $836.04 per ounce, while palladium climbed as much as 1.65% to trade at $930.36 per ounce. September contract for copper added 0.36% to its value to $2.8205 per pound.

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