Gold closes in to $1400,Copper at 3-week-peak, Dollar dips on Fed rate sign

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Gold closes in to $1400,Copper at 3-week-peak, Dollar dips on Fed rate sign

On Thursday, the 20th of June 2019, the precious metal spot gold prices had been closing in to $1400 marks and hovering at a tight range below $1390 an ounce, after breaching its five-year-high at $1395.45 per ounce during early Asian trading hours, a level last seen on March 13th, 2014, following Fed’s signal of possible rate cut next month.

While spot gold price had been anchoring near its multi-year high, a steep sell-off of American dollar had taken place and industry-grade metals likes of copper and nickel had reached their three-weak-peak despite a much-softer global demand.

In point of fact, while this report was being prepared, June 20th, GMT. 08.01, financial markets were heavily betting on at least three rate cuts this year, while investors were found rushing on to safe-haven commodities likes of gold and other metals instead American dollar amid an ever-evolving geo-political landscape.

Meanwhile Japanese yen had also lost some of its safe-haven appeal, as Bank of Japan had echoed the leads of US Central Bank on a Thursday (June 20th) morning statement, which had also led to further upsurge of safe-haven commodities.

Quoting statistics, the three-months copper on the London Metal exchange had added 0.9 percent so far to $5,970 per ton, while Nickel had breached its highest level since May 28th at $12,205 a ton. Aside from that, while the American currency had been witnessing a broad-based sell-off on Thursday (June 20th) market after losing as much as 0.5 percent overnight, adding that the safe-haven precious gold alongside industrial metals could add further momentum following a Trump-Xi meeting later this month on Japan, ANZ wrote in a client note, “A weaker USD offset some concerns about the upcoming U.S.-China trade talks.

Reports of the call between the two presidents suggested that their meeting at the G20 would only cover strategic issues, raising concerns that an agreement was still some way off”.