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Precious Metals Fall as Central Banks Make Hawkish Signals

June 30, 2017 at 9:29 by Vladimir Vyun

Gold fell today amid signs that central banks around the world are changing their dovish bias and are planning to gradually abandon excessive monetary stimulus. Other precious metals fell as well, with the exception of platinum.

Comments from the leaders of such central banks as the European Central Bank, the Bank of England, and the Bank of Canada made market participants believe that the banks are planning stimulus exit. While that was driving the US dollar down, helping precious metals in the process, such shift in the stance is not good for gold in the long run. Higher interest rates usually make investors more interested in higher-yielding assets, while making them unwilling to hoard non-yielding bullion.

Futures for delivery of gold in August slipped 0.12% to $1,244.3 per troy ounce as of 9:18 GMT on COMEX today. The metal was heading to a monthly loss, falling almost 2% in June. It was the first monthly drop in 2017.

September contract for silver declined 0.32% to $16.6 per ounce. Spot price for platinum gained 0.15% to $922.17 per ounce. Palladium dropped as much as 0.69% to $846.34 per ounce but remained the best-performing metal this year so far.

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