Gold prices rose on Tuesday, as risk appetite led to limited gains in the precious metal. Gold futures for June on the New York Mercantile Exchange rose by only $0.40 or 0.03%. Gold traded at $11,291 an ounce. The previous session was down to a low of $1.281 an ounce, its lowest level since Dec. 27.<\/p>\n
The news from China, which plans to cut tariffs on US imports, has reduced the fears of a possible trade war between China and the United States. Beijing said it would cut tariffs from 20 percent to 15 percent from July 1st, while tariffs on auto spare parts would be cut from 10 percent to 6 percent.<\/p>\n
With no major economic data on Tuesday, investors are looking forward to the minutes of the Fed’s last policy meeting on Wednesday. Market participants are also preparing for Federal Reserve Chairman Jerome Powell to attend a panel discussion on “Financial Stability and Central Bank Transparency” at the Risk Conference at Sveriges Riskbank Conference in Stockholm, Sweden on Friday.<\/p>\n
Expectations that the US central bank will raise interest rates again next month have added to the downward pressure on gold. Higher US rates tend to strengthen the dollar and push bond yields higher, making assets that do not have returns like gold less attractive.<\/p>\n
The prospect of a four-time rate hike this year has pushed above the 50% threshold this week, and markets will closely watch the June 12-13 meeting to see if the Fed may raise its previous forecast for just three hikes in 2018 or more.<\/p>\n
In other metals, silver futures rose 0.2 percent to $16.560 an ounce. Futures for palladium were unchanged at $990.40 an ounce, while platinum rose 0.6% to $905.50. In base metals, the price of copper rose 1.2% to $3.135 per pound as Chinese tariff cuts supported optimism about global growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
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