Gold witnessed a revival in its price on July 5, 2017, after it slumped almost 1.8% on July 3. Gold settled at $1,221.7 per ounce on July 5 after touching the day’s low of $1,216.5.
Another important phenomenon that played on precious metals prices on July 5, 2017, was the Federal Reserve’s meeting minutes.
The trajectory of the interest rate hike is slowly but steadily moving upward, which is negative for precious metals.
The markets had a boost of optimism on Monday, July 3, just before the July Fourth holiday. Optimism in the market softens the demand for precious metals.
On July 3, 2017, gold fell to an eight-week low of $1,218 per ounce, likely due to the revival in the equity markets and the rebound in the US dollar.
While gold has an inverse relationship with the US dollar, equity markets also have a connection to the precious metal.
Gold tumbled to an eight-week low on July 3, 2017. Gold futures for August delivery fell almost 1.9% to settle at $1,219.2 per ounce.
The US Dollar Index (or DXY), which prices the dollar against a basket of six major world currencies, rose 0.62% on July 3.
Orange juice futures for the week ended June 30 reversed their trend in the last week to move higher on average for the whole week.
The overall prices for cotton moved higher for the week ended June 30 compared to levels during the previous week.
On June 30, the near-month sugar number 11 futures stood 5.2% higher at 13.7 cents from 12.8 cents on June 23.
On June 30, cocoa futures in the US stood 4% higher at $1,836 per metric ton from $1,769 per metric ton on June 23.
In the week ending June 30, Arabica and Robusta coffee prices rose week-over-week.
The sell-off in bonds on Thursday, June 29, pushed the prices of sovereign paper lower, and this helped fuel the fall in precious metals that day.
All four precious metals had a down day on Thursday, June 29, with even palladium joining its fellow metals in the tumble.
The more optimistic investors are about the economy, the less they need haven assets like gold and silver.
The platinum industry is now headed for its third-straight year of surplus, likely due to the higher demand for petroleum-based cars.
Palladium has been much stronger than its fellow precious metals, having seen a YTD (year-to-date) gain of 26%.
In the past month, silver has dropped 4.9%, while gold has dropped only 1.9%.
The rise in precious metals on Tuesday, June 27, 2017, was also due to the slump in the US dollar.