Gold price tumbles along with the firming performance of the greenback. The US dollar index rose by 0.2% on the latest report.
Spot gold experienced a modest slash at 0.2%, now trading at $1,925.09. Similarly, gold futures records a contango but still fell at the same percentage. It is currently priced at $1,931.20 per ounce.
Silver fell by 0.8% to $26.78 per ounce, similar to platinum, which shelled off 0.1% to $906.74. On the other hand, palladium climbed 0.1% to $2,296.80.
US markets are shut to give way to the Labor Day holiday.
The unprecedented good performance of the USD sent metal prices to retreat, although only slightly.
Experts in the industry note that the safe haven’s decline will not sustain as fear outshines optimism amid the slow economic rebound.
Maintaining above the $1,900 resistance threshold is essential to keep the metal afloat, they added.
The latest report on the Japanese economy’s shrink in the second quarter dims hopes for faster economic recovery.
Similarly, government and central banks now opt for pumping stimulus cash into the bleeding economy to cushion the already felt recession.
The mentioned circumstances drive the bullion to high due to its importance in hedging against inflation and currency debasement.
Analysts noted that gold would likely trade sideways. No bulls nor bears will be expected in the remaining days of the month.
The metal commodity is under a constant push and pulls among market players. The higher dollar weighs the gold down while economic uncertainties give floor support to price.
The only event that investors expect at present is an unexpected shift in central bank decisions, whether they will hedge against or continue to accommodate inflation.
Gold gained 27% so far in the year, as low-interest rates lead traders to fluctuate to bullion.
Copper Metal’s Mine Supply Declines, Refined Supply Increase
Copper metal has experienced an unsustainable supply divergence for August. The commodity’s mine supply experience a sudden drop while processed, refined supply rise.
This is attributed to the lack of staff on mining sites, heightening the risk of disruptions to mining operations.
The Bank of America reported that the metal’s baseline mine supply has successively fallen in the past years. It added that copper concentrates production for the year is only at the same level as the yields in 2016.
Nevertheless, the output is expected to rebound as early as the first quarter of next year. Still, concerns on the unexpected losses brought by reduced activities in copper-producing countries may dim their prospect.
Chile, the leader in the industry, had managed to revert production capacity to the pre-COVID19 level.
But inside sources claim that giant mines in the country still struggle to maintain normal production levels since Chile still battles with the virus head-on.
However, shipments for August amounting to only $2.76 billion experienced an 11% drop from figures recorded in July. This is copper metal’s stiffest decline since January.
Comex copper inventories fell for 17 consecutive days, the commodity’s longest rally of draw-down in more than a year.