Gold futures closed higher on Wednesday (June 15), driven by investors buying gold as a safe haven. The U.S. released weak economic data, including the first decline in retail sales in five months and the Fed raised interest rates by 0.75%.
- The gold futures were up $6.1, or 0.34%, at $1,819.6 an ounce.
- Silver futures were up 46.6 cents, or 2.22%, at $21.42 an ounce.
- The platinum was up $13.9, or 1.53%, at $924.6 per ounce.
- Palladium was up $54.10, or 3%, at $1,834.30 an ounce.
Investors buy safe assets after the U.S. released weak economic data. The U.S. Department of Commerce reported that retail sales fell 0.3% in May from the previous month. This was the first decline in five months after a 0.7% gain in April.
The National Association of Home Builders (NAHB) of the United States reported that the Homebuilder Confidence Index fell two points to 67 in June, the lowest level in two years and the sixth consecutive month of decline.
The decline in the confidence index was attributed to rising mortgage rates and construction costs. As a result, the current sales confidence index has also fallen.
Federal Reserve Chairman Jerome Powell spoke to the press after the monetary policy meeting and said that the Fed will raise interest rates by 0.75%.
The Federal Reserve’s Monetary Policy Committee (FOMC) decided at its meeting on Wednesday (June 15) to raise the short-term interest rate by 0.75% to 1.50-1.75%, its largest rate hike in the past 28 years or since 1994
„From the perspective of today, either a 50 basis point or a 75 basis point increase seems most likely at our next meeting,“Powell said on Wednesday after the announcement.
The Spot Market is Open
Thursday, June 16, 2022