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.
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