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Gold prices have been dampened all week on concerns that the US Federal Reserve will begin pulling back its quantitative easing as early as next month.
Although gold saw slight improvements early in the session August 9 after a rally in platinum caused investors to direct their attention to all precious metals, it soon lost $2.62 to reach $1,309.29 an ounce, according to Reuters. Similarly, futures for December dropped $1.20, to $1,308.70 an ounce. Gold’s losses today were primarily due to the dollar’s rebound. When the currency fares well, it is more expensive for overseas investors to buy gold. Earlier in the week, gold fell below the $1,300 mark.
On the other hand, silver was unharmed by investors’ worries over the Fed’s stimulus program today. It increased $0.10, to $20.30 an ounce, Reuters reported. Earlier in the week, the metal did not perform as well. On August 6 it hit $19.60, a decline of $0.09.
Copper saw a huge boost today on positive data from its top consumer, China, with prices reaching a two-month high. In London, three-month copper rose to $7,210 a tonne in official rings. Earlier in the session, it hit $7,221.75 a tonne, its highest price since June 11, according to Reuters. That was a gain of $36.75 since yesterday’s close.
The metal fell earlier in the week on pessimistic data from China. Weak service sector reports in the Asian nation caused concerns over demand for copper. For example, three-month copper on the London Metal Exchange closed at $6,975 a tonne August 5.
China’s strong economic data also helped Brent crude oil grow, since the country is a top energy consumer. The commodity rose $0.49, to $107.17 per barrel today. This is a major improvement over last session, when it hit its lowest level since July 4, Reuters reported.
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