Now that the minutes of the April FOMC meeting have been revealed and the market has absorbed the news, market participants now sit on the sidelines awaiting U.S. data to be released later in the week before considering entering the gold market again.
The hawkish sentiment expressed by a majority of FED governors has chased investors out of the gold market, dropping gold 5 percent days after the minutes were released.
A very quiet overnight trading session as we see gold slightly higher, mainly due to a weaker dollar, and off the lows earlier in the week when we saw gold test the $1,200 dollar level.
Weak fundamentals not helping the yellow metal as refiners as well as gold dealers report sluggish demand.
Silver trading either side of $16 dollars as investors are hoping for weak economic data in the coming weeks, weakening the FED’s hand to raise rates. Demand for silver products also on the quiet side as reported by the majority of dealers we spoke to.
CME reports a 23 percent chance of a rate hike in June and a 59 percent chance in July.
Have a wonderful Wednesday.
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