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Gold prices continued to fall today as the aggressive tone used again by central banker Powell boosted the dollar, while copper fell to a 16-month low amid fears of an impending economic downturn.
In particular, the August gold contract closed with a loss of 0.5% or $ 8.6 to $ 1,829.8 an ounce.
Similarly, July silver lost 38 cents, or 1.8%, to $ 21,042 an ounce.
According to Naeem Aslam, chief analyst at AvaTrade, the gold losses are mainly due to “the strengthening dollar, as the Fed is expected to pursue an even more aggressive policy.”
It is recalled that the rise of the dollar makes the precious metal more expensive for holders of other exchange rates and therefore tends to limit its demand.
For his part, Fed Chairman Jerome Powell admitted today, on the second day of his six-month congressional hearing, that a recession in the United States is clearly a possibility, although he stressed that the Fed is not trying to provoke it in order to inflation.
In each case, they have seized it, despite obstacles we can scarcely imagine. ”
Elsewhere, the US economy grew at a slower pace in June, confirming the recession.
This was reflected in the price of copper, the predominantly industrial metal, which saw its price plunge 5.2% or 20 cents to close at $ 3,739 a pound, which is the lowest level in the last 16 months or so.
Elsewhere, platinum also fell 2.4% to $ 904.4 an ounce, while Palladium fell 0.8% to $ 1,824 an ounce.