Gold futures are trading flat on Tuesday as investors remain cautious following Monday’s terrorist attack in Manchester. The yellow metal is pulling back from
June gold futures rose $1.20, or 0.10%, to $1,262.60 per ounce at 13:34 GMT on Tuesday. Gold prices finished Monday’s trading session at their highest levels since the beginning of May. Gold posted its best weekly gain in five weeks last week.
Silver is mustering up a rally. July silver futures climbed $0.09, or 0.55%, to $17.28 an ounce.
Caution is sweeping the financial markets on Tuesday. Following Monday’s deadly terrorist attack in the UK, which killed at least 22 people, the sterling was impacted compared to the greenback. The US dollar traded at a
Gold was also affected by increased expectations that the Federal Reserve will raise interest rates at next month’s Federal Open Market Committee (FOMC) meeting. According to the CME Group FedWatch tool, there is a 75% chance the US central bank will pull the trigger on a rate hike. Gold is sensitive to a
Rate hike expectations have been fluctuating this month due to geopolitical tensions, White House turmoil, and mixed US economic data. Gold has been supported in May because of what’s occurring in Washington, North Korea, and the Middle East.
Minneapolis Fed President Neel Kashkari and Philadelphia Fed President Patrick Harker are scheduled to deliver speeches on Tuesday. Investors will be combing through their prepared remarks to find any hints pertaining to a potential June rate hike.
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