Gold Climbs on Poor US Data

The poor US data on retail sales and inflation saw gold prices climb in North American trading on Wednesday morning ahead of the Feds scheduled meeting.

Expectations by investors and traders that the Fed with raise interest rates following the release of the US retail and inflation data saw the prices of gold climb as they sought a safe haven.

On the Comex, gold futures gained $7.20 or 0.6 percent at $1,275.21 a troy ounce.

Spot gold was at $1,273.49.

Silver futures on Comex gained 1.6 percent or 26.1 cent to $17.02 a troy ounce.

The poor US data released by the Commerce Department showed that consumer prices fell by 0.1 percent last month, while energy costs, excluding food rose 0.1 percent compared to forecasts of 0.2 percent. Retail sales for May dropped 0.3 percent and Core retail sales, excluding automobile sales fell 0.3 percent.

Investors Focus on Fed

Federal Reserve Bank Chair, Janet Yellen is scheduled to announce their decision on an imminent rate tax hike between 1.0 percent and 1.25 percent, which is widely expected and their plan on future interest rates. They will also pay attention as to the Feds plan of reducing the $4.5 trillion balance sheet. The forecasts for economic growth also known as the ‘dot-plot’ will also be in the announcement.

Traders and investors are encouraged to trade with a reliable and safe broker like uTrader. They are regulated by the Financial Market Relations Regulation Centre (FMRRC) in Russia.

High Investment Returns

They offer traders high investment returns of up to 650 percent, with a choice of over 90 high quality assets of indices, commodities, currencies and stocks to trade. Available 24/7 for trading, their customer support who is reliable can be reached by phone, email, live chat, Skype, Facebook and Twitter.

Bonuses, risk free trades, and cashbacks are some of their perks!

Click here to trade with uTrader

*Remember that trading binary options can be a risk so always remember to trade with what you can afford.

Leave a Reply