Gold Prices Jump as Dollar Falls Before Fed on Weak US Data

Jon Economy

Gold prices popped to a 4-session high at $1277 per ounce Wednesday lunchtime in London as the US Dollar sank ahead of the Federal Reserve’s long-expected June interest-rate decision following weaker-than-forecast economic data.
US retail sales fell in May, down 0.3% from April to defy analyst predictions of a slight rise.
Consumer price inflation also slowed, pulling the official index 0.1% lower month-on-month with the cost of living rising 1.9% per year against 2.0% forecast.
Silver also rose as gold prices jumped almost 1%, regaining the week’s previous 2.8% drop to trade at $17.24 per ounce.
World equities rose after New York set new all-time record highs overnight, while the Dollar fell hard against the Euro on the FX market, with the single currency nearing early June’s 7-month highs above $1.12 to the greenback.

This post was published at FinancialSense on 06/14/2017.