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Metals Under Pressure from Rising Dollar, Fed Policy Outlook

May 1, 2018 at 19:15 by Vladimir Vyun

The market of metals was under pressure today from the rising US dollar. The currency turned positive for the year, and that weighed on dollar-denominated commodities.

The greenback was gaining support from the outlook for an interest rate hike from the Federal Reserve. Higher interest makes no-yielding assets, like bullion, less appealing for investors.

The Federal Reserve will make a policy announcement tomorrow. While it is expected that US policy makers will hold the benchmark rate in the range of 1.50%-1.75%, traders will wait for the statement to see if it hints at fourth rate hike in 2018. If that is the case, metals will likely slump even further.

June contract for delivery of copper dropped 0.92% to $1,307 per troy ounce as of 19:05 GMT on COMEX today. July silver dived 1.26% to $16.2 per ounce. Copper slid 0.86% to trade at $3.0475 per pound.

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

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