After slightly weakening on Tuesday, gold prices are surging once again during Wednesday’s trading session. The yellow metal is nearing a
August gold futures climbed $9.28, or 0.71%, to $1,324.58 per ounce at 17:07 GMT. Gold prices are poised to reach their highest settlement level since July 11, 2014.
Silver’s performance was equally as impressive. September silver prices rose $0.46, or 2.57%, to $18.30 an ounce. Silver prices will finish the trading session above $18 for the first time since September 2014.
The steady gains in gold and silver prices cannot be attributed to just the Brexit fallout.
A new report found that US consumers reduced their spending in May, one month after consumers had splurged. Outlays rose only 0.4% last month as the rate of inflation remained relatively unchanged.
An increase in precious metal prices is also due to a drop in the US dollar and the Federal Reserve unlikely to raise interest rates next month. According to the CME Group FedWatch tool, there is a 2% probability of a rate hike in July. Odds for a September rate hike stand at just 1.2%.
In a
With a great deal of global economic uncertainty, investors are using gold and silver as safe havens. As more than $3 trillion have been wiped off global stock markets, the demand for precious metals has been soaring.
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