Gold broke from its six-session losing streak in yesterday’s markets after the Federal Reserve raised its interest rates by 25 basis points and revealed their detailed plans to reduce its balance sheet this year.
The yellow metal had bounced back and reversed its earlier decline and settled in a higher position. The advance was brought up by two economic reports, one being the weakening consumer prices and the other a drop in retail spending.
“The Fed appears undeterred by recent inflation weakness and remain on a trajectory for another increase this year” this was a statement from Rob Haworth, the senior investment Strategist at U.S. Bancorp Wealth Management.
Higher interest rates is a bad omen for gold futures because they enhance the appeal of yield-bearing assets which gold futures does not offer.
July Silver was low and was last seen trading at $17.075 per ounce and later settled at $17.136 per ounce as the session came to a close.
Copper July futures dropped 2 cents a 0.9% drop and was settled at $2.573 per pound while Platinum was up by $27.70 which is equal to a 3% increase and ended the session by $951.90 per ounce.
August Gold futures slid in the session to $1,272.70 after settling up by 0.6% and was later seen trading in the bull at $1,275.90 per ounce.