The price of gold eases off on Wednesday’s session, same time when chief of FBI James Comey got immediately fired from the office by U.S. President Donald Trump. However the on-going expectations of an interest rate hike by the Fed outperformed the yellow metal’s gains.
U.S. gold futures added $2.80 and trades at $1,218.90 per ounce. Spot gold however fell more than 0.20 percent to finish at $1,218.46 per ounce.
Gold rapidly fell on the previous week driven by concerns about the French referendum this month, along with the sixth nuclear test of North Korea. The precious metal plunged to its most depressing level last Tuesday at $1,213.81 per ounce.
Carsten Fritsch, a Commerzbank analyst, perceived the dip of gold as an attempt to secure prices for the next days to come. Fritsch added that the stock market took a break after President Trump took James Comey out of the FBI. According to rival democrats, Trump has a political reason for the decision.
Elsewhere, stocks in Europe pulled back from its 21-month highs and the U.S. currency also fell on worries that Trump may have a hard time enacting his tax reform plans due to him firing the FBI chief.
As of now, the undertakings of the bullion toned down as investors await U.s. monetary policy for June, given that an interest rate hike would hurt the precious metal as it would increase the opportunity cost of the bullion, whilst strengthening the expensive dollar.
Meanwhile in other metals: Palladium rose by 0.38 percent at $799.22. Platinum added 1.07 percent at $910.60. Spot silver was also higher by 0.25 percent at $16.18.