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US Monetary Policy Outlook Continues to Drive Metal Market

August 25, 2014 at 20:02 by Vladimir Vyun

Last week’s comments of US policy makers continue to drive the commodity market at the start of this week as traders prepare for an eventual interest rate hike. The comments suggested that the Federal Reserve is considering monetary tightening in not-so-distant future, and it may happen even earlier if the economy continues to demonstrate satisfactory performance. Such outlook hurt precious metals, driving copper up at the same time.

Last week’s Fed minutes were more hawkish than was expected. Fed Chairwoman Janet Yellen was speaking at the Jackson Hole Symposium on Friday, and her speech turned out to be rather balances. While it was not hawkish, strictly speaking, markets were clearly pricing in a completely dovish sentiment.

December futures for gold lost 0.12 percent to $1,278.70 per troy ounce as of 19:57 GMT on COMEX today. Contract for silver went down 0.17 percent to $19.43 per ounce. Spot price for platinum fell 0.25 percent to $1,418.19 per ounce, while palladium managed to erase the previous decline and traded little-changed at $888.61 per ounce. Futures for copper advanced 0.57 percent to $3.2415 per pound.

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