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Precious Metals Reverse Losses After Fed’s Dovish Rate Hike

December 20, 2018 at 18:27 by Vladimir Vyun

Gold and other precious metals rallied today, reversing losses they have posted earlier on Thursday. Market analysts universally attributed the rally to the reaction to the policy statement and economic projections from the Federal Reserve, though different experts had opposing reasons for the exact logic behind the gains. Some argued that the dovish statement sent the US dollar down, helping commodities priced in the greenback as a result. Others speculated that Fed’s stance was less dovish than was expected, and caused risk aversion, increasing the attractiveness of bullion as a safe haven. Whatever the cause, precious metals demonstrated solid gains during Thursday’s trading session.

Futures for delivery of gold in February advanced 0.88% to $1,267.5 per troy ounce as of 18:10 GMT on COMEX today. March contract for silver advanced 0.35% to $14.86 per ounce. Spot price for platinum jumped 1.09% to $794.94 per ounce, and palladium gained 0.43% to $1,262.83 per ounce.

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