On Thursday, 2018 saw it’s lowest gold levels so far. However, the U.S. dollar has been on a high for six weeks now. Jerome Powell, Chairman of the Federal Reserve, was in his second day of testimony on Capitol Hill. He was speaking on inflation, and how strengthening the labor market can occur without the help of rate increase.
Silver futures for May went down 13.1 cents coming in 0.8 percent lower at $16.276 per ounce. Gold futures have gone down 1% for the week. According to Tyler Richey, the co-editor of Sevens Report, the reason for the drop is due to the talk that’s going on at the Fed. More so, all of the underwhelming information that he is giving about inflation data. When it comes to gold, Richey says that there are a lot of factors. The two most important factors are the significant trends in inflation and the differing interests rates.
Lowest Gold Levels For 2018
Michael Kosares, the founder of USAGold, say that the precious metal is a part of a general commodity selloff. Reports say that Trumps administration will be implementing high tariffs on metals such as aluminum and steel.
However, after the five previous increases in rates, investors unraveled the position to take on the profits. There’s a chance for it to happen again after March’s rate increase.
May’s copper futures fell a whopping 0.3 percent, coming in at $3.12 per pound. Platinum for the month to April came in 3.1 percent lower at $957.80 per ounce. Palladium for June fell 6.2 percent, making it $973.20 per ounce, the most moderate finish in almost three weeks.
Palladium and Platinum saw a decline in numbers after a German court made a ruling early in the week banning diesel motors in an effort to improve the quality of air in the country. Both metals are essential in the automotive world.