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Gold & Other Precious Metals Sink on US-China Trade Talks, Copper Rallies

Summary:
Gold tanked today. Other precious metals joined the decline, showing significant losses as well. Palladium was an exception, managing to carve out reasonable gains. The major piece of news today was the report that the United States and China are going to resume their trade negotiations. While no specific date was set, sources talked about “early October”. That was enough to make traders seek higher-yielding risky assets, eschewing safer ones like bullion. The same optimism can explain the rally of copper. China is the biggest consumer of the industrial metal, meaning that good news for the Asian country means prospects for higher demand for copper. Positive US macroeconomic reports also weighed on gold. Automatic Data Processing reported that US employment rose by almost 200,000 last

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Gold tanked today. Other precious metals joined the decline, showing significant losses as well. Palladium was an exception, managing to carve out reasonable gains. The major piece of news today was the report that the United States and China are going to resume their trade negotiations. While no specific date was set, sources talked about “early October”. That was enough to make traders seek higher-yielding risky assets, eschewing safer ones like bullion.

The same optimism can explain the rally of copper. China is the biggest consumer of the industrial metal, meaning that good news for the Asian country means prospects for higher demand for copper.

Positive US macroeconomic reports also weighed on gold. Automatic Data Processing reported that US employment rose by almost 200,000 last month, and the Institute for Supply Management reported that the US services sector was expanding with sharply accelerating pace.

Futures for delivery of gold in December dropped 2.11% to $1,527.40 per troy ounce as of 17:25 GMT on COMEX today. Contract for silver tanked as much as 3.51% to $18.86 per ounce. Spot price for gold tumbled 2.14% to $965.31 per ounce. At the same time, palladium edged up 0.36% to $1,564.19 per ounce. Copper for delivery in December jumped 1.62% to $2.6370 per pound.

If you have any questions and comments on commodities today, use the form below to reply.


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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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