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Precious Metals Continue to Gain on Geopolitical Tensions, Fed Cut Prospects

June 14, 2019 at 11:17 by Vladimir Vyun

Precious metals continued to rally today, extending yesterday’s gains, as the attack on two oil tankers in the Gulf of Oman resulted in risk aversion on markets and demand for safer assets among investors. The United States blamed Iran for the attack, though Tehran declined such accusations.

Metals also rallied on prospects for an interest rate cut by the Federal Reserve. While most market participants do not expect the Fed to change its monetary policy at the next week’s meeting, the CME FedWatch page shows that it is almost guaranteed for the cut to happen by the year’s end.

Unsurprisingly, copper did not join the rally. Being an industrial metal, it usually performs poorly in an environment of risk aversion. Additionally, poor macroeconomic data in China, the biggest consumer of the metal, dragged copper even lower.

Futures for delivery of gold in August climbed 1.06% to $1,358.00 per troy ounce as of 11:09 GMT on COMEX today. July contract for silver gained 0.96% to $15.04 per ounce. Spot price for platinum edged up just a little by 0.06% to $813.17 per ounce, while palladium rallied 0.51% to $1,456.71 per ounce. At the same time, copper for delivery in July dropped 0.51% to $2.6430 per pound.

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

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