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Precious Metals Under Pressure from Positive Market Sentiment

August 19, 2019 at 14:04 by Vladimir Vyun

Gold fell about 1% today. Silver and platinum fell as well but palladium managed to gain. Copper rose too.

Today’s market sentiment was favorable to riskier assets, not safer ones. The delay of US tariffs on Chinese imports and sanctions against Huawei made investors bolder and more willing to risk, buying assets with high risk and high return instead of safe ones. Precious metals, especially gold, are often used as a safe haven by traders, therefore they found limited demand today. Conversely, copper, being industrial metal, profited from the risk-on mentality of traders.

Many market analysts think that gold will resume its rally in the longer run. While tensions between the United States and China subsided by now, they by no means have gone away. Federal Reserve Chairman Jerome Powell will be talking at the Jackson Hole symposium this week, and experts think that his speech will likely set the stage for at least a 25 basis point interest rate cut in September. Lower interest rates are usually positive for gold, which does not bear yield by itself.

Futures for delivery of gold in December dropped 1.08% to $1,507.10 per troy ounce as of 13:55 GMT on COMEX today. September contract for silver slid 1.33% to $16.90 per ounce. Spot price for platinum fell a little by 0.04% to $848.81 per ounce. Palladium climbed 1.29% to $1,470.12 per ounce. September copper advanced 0.60% to $2.6105 per pound.

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