Tuesday , August 20 2019
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Metals Under Pressure from Rising Dollar As US Unemployment Sinks

Summary:
Metals fell today, hurt by the rally of the US dollar, which put pressure on dollar-denominated commodities. Usually, metals, and gold in particular, trade inversely to the US currency. Surprisingly, platinum managed to avoid losses, posting huge gains. The greenback rallied after US jobless claims dropped unexpectedly, reaching the lowest level in almost 50 years. Now, traders wait for tomorrow’s nonfarm payrolls. Analysts predicted that the report will show a decent growth by 175,000 in March following the abysmal reading of 20,000 in February. Worryingly, forecasts also promised wage inflation to slow from 0.4% to 0.2%. Futures for delivery of gold in June declined 0.22% to ,292.5 per troy ounce as of 16:06 GMT on COMEX today. May contract for silver dropped 0.25% to .07 per ounce.

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Metals fell today, hurt by the rally of the US dollar, which put pressure on dollar-denominated commodities. Usually, metals, and gold in particular, trade inversely to the US currency. Surprisingly, platinum managed to avoid losses, posting huge gains. The greenback rallied after US jobless claims dropped unexpectedly, reaching the lowest level in almost 50 years. Now, traders wait for tomorrow’s nonfarm payrolls. Analysts predicted that the report will show a decent growth by 175,000 in March following the abysmal reading of 20,000 in February. Worryingly, forecasts also promised wage inflation to slow from 0.4% to 0.2%.

Futures for delivery of gold in June declined 0.22% to $1,292.5 per troy ounce as of 16:06 GMT on COMEX today. May contract for silver dropped 0.25% to $15.07 per ounce. Spot price for palladium sank as much as 3.01% to $1,366.85 per ounce, but platinum managed to soar by 3.24% to $897.58 per ounce. Copper for delivery in May lost 1.09% to $2.9165 per pound on COMEX.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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