Gold & Silver

Gold at 5-year peak as Fed signals rate cut

Agencies June 20 | Updated on June 20, 2019 Published on June 20, 2019

Gold prices have gained about $80 per ounce so far this month   -  REUTERS

Oil jumps by 3% on geopolitical tensions

Gold prices surged to their highest in more than five years on Thursday after the US Federal Reserve signalled a possible interest rate cut as early as next month, pressuring US Treasury yields and the dollar.

Spot gold was up 1.6 per cent at $1,380.96 per ounce as of 1213 GMT, after hitting its highest since March 17, 2014 at $1,386.38.

Gold prices have gained about $80 so far this month.

US gold futures jumped 3 per cent to $1,389.10 an ounce, after touching their highest since April 2018 at $1,397.70.

Silver gained 1.2 per cent to $15.34 per ounce, after hitting its highest since March 27 at $15.40.

Platinum rose 1.2 per cent to $820.26 per ounce, while palladium was 1 per cent higher at $1,515.02 per ounce, having hit a 12-week high of $1,531.38 earlier in the session.

Crude oil rose by more than 3 per cent to above $63 a barrel on Thursday after Iran shot down a US military drone, raising fears of a military confrontation between Tehran and Washington.

Oil rises

Brent crude, the global benchmark, was up $1.73 at $63.55 a barrel at 1218 GMT, having earlier gained 3.3 per cent to $63.88. US West Texas Intermediate crude rose $1.84 to $55.60.

Also propelling oil higher on Thursday was a decline in US crude inventories and the prospect of prolonged supply restraint by producer group OPEC and its allies.

US crude stocks fell by 3.1 million barrels last week, more than analysts expected, the Energy Information Administration said on Wednesday.

The Organization of the Petroleum Exporting Countries and allies including Russia agreed this week to meet on July 1-2, ending a month of wrangling about the timing.

The coalition known as OPEC+ looks set to extend a deal on cutting 1.2 million barrels per day of production. The deal expires at the end of June.

Published on June 20, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.