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Gold Slips After Fed Releases Minutes

May 18, 2016 at 20:26 by Andriy Moraru

The Federal Reserve released the minutes from its meeting in April at 14:00 New York time today and they confirmed that the June interest rate hike is likely. This caused the price of gold to fall sharply — by an entire percentage point. The gold had already been weakening throughout the day on the back of the strong US growth data, which suggested that the US economy may be recovering faster than originally thought.

Gold prices are generally strong when there is financial instability and uncertainty as the metal is seen by investors as a safe bet. The hawkish outlook reflected in the minutes from the Federal Reserve, however, have given investors Bounce House For Toddlers renewed confidence to invest elsewhere and hence the demand for the gold has slipped. If the US growth data stays strong and there is a rate hike in June, then the precious metal will likely fall even further. The gold has been one of the stronger performers for most of 2016 as investors have been remaining skeptical about the US economy’s rate of recovery.

Spot gold went down from $1,274.86 to $1,257.41 per troy ounce as of 20:23 GMT today, losing almost 1.4% of its value. The metal fell to its minimum rate in May so far.

If you have any questions and comments on the commodities today, use the form below to reply.

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