Gold hit a
Minutes released from its April 26–27 Federal Open Market Committee (FOMC) meeting suggested that policymakers were in favor of hiking
Federal Reserve communications Bounce House For Toddlers following the March FOMC meeting were interpreted by market participants as more accommodative than expected. In particular, investors were attentive to the
larger-than-expected downward revisions to the projections of the federal funds rate in the FOMC’s Summary of Economic Projections as well as to references in the March FOMC statement and the Chair’s prepared remarks at the press conference to risks to the U.S. economic outlook stemming from global economic and financial developments.
After the minutes were published, the US dollar strengthened, which often hurts
Gold is vulnerable to rate increases. Hikes to interest rates can negatively affect the price of gold since the precious metal does not yield any interest. Gold can also have a difficult time competing with
The entire family of precious metals also experienced considerable drops following the release of the Fed minutes. July silver prices tumbled 3.7%, or 63.9 cents, to $16.49 per ounce. July platinum shed 2.8% to $1,013 an ounce, while July palladium declined 3.7% to under $559 per ounce. July copper fell 1.8 cents to $2.06 a pound.
In the midst of stock market volatility and sluggish global economic growth this year, investors have flocked to gold as a safe haven.
Gold bugs remain confident that the yellow metal will rise in the coming years as central banks devalue their currencies.
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