Draghi speaks

Precious metals saw an up-day on July 20, 2017, after the ECB’s (European Central Bank) president, Mario Draghi, said that policymakers would discuss potential changes in the bond-buying program in autumn. This comment boosted the euro and caused a fall in the US dollar.

Gold futures for August delivery rose 0.28% and ended at $1,245.5 per ounce on July 20. Silver futures for September expiration closely followed gold and rose 0.29% to $16.3 per ounce. Platinum rose 0.94% and ended at $930.3 per ounce. Palladium diverged from its fellow precious metals and fell ~1.3% to close at $852.9 per ounce.

 

Draghi’s Comments and Precious Metals’ Movements

 

Rebound in price

Draghi’s overall tone remained dovish. If he’d been more hawkish in his comments and not deferred until autumn, precious metals could have risen further. Precious metals are closely associated with the overall uncertainty in the market.

Source: Market Realist

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