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Precious Metals Drop After Yellen’s Speech

September 25, 2015 at 3:09 by Vladimir Vyun

Gold fell today following yesterday’s speech from Janet Yellen, Chairwoman of the Federal Reserve. Silver erased its previous drop, platinum fell, and palladium retreated after a failed attempt to rally.

Yellen said in her speech, which has occurred close to the end of Thursday’s session, that she and most other Fed members expect an interest rate cut this year. While last week’s policy announcement made traders think that the US central bank may postpone monetary firming until the next year, the Chairwoman’s remarks made them to change their view.

It is interesting to note that palladium has been performing much better than platinum recently. Some analysts attribute such disparity to the recent Volkswagen scandal. They speculate that the situation can lead to decline in production of diesel vehicles and a subsequent increase in production of gasoline vehicles. And platinum is used in making the former while palladium is used in creating the latter.

December contract for delivery of gold dropped 0.33 percent to $1,150 per troy ounce as of 2:58 GMT on COMEX today. Contract for silver was little changed at $15.13 per ounce. Spot price for platinum fell 0.39 percent to $951.20 per ounce. Palladium declined 0.25 percent to $654.75 per ounce.

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