19th May 2016

The precious metals group got hammered on Wednesday (post-exchange settlement), as a soaring dollar and rising rates hit the complex hard. The upward move in both was triggered by the release of the long-awaited Fed minutes that strongly suggested the central bank is warming to the idea of a rate increase come June, especially, it was noted, if the economic data continues to improve (as it has since the Fed meeting) and if inflation moves towards the Fed’s 2% target (which it seems to be doing as per Tuesday’s CPI data). In the wake of the release of the minutes, the futures curve now sees a 34% chance of a rate increase next month, up from 19% shortly before the release. 

News article attributed to www.bulliondesk.com