Precious metals increased as gold futures for July expiration rose 0.78% and closed at $1,273.6 per ounce. Platinum and palladium were in line with gold—they rose 0.98% and 1.7%, respectively, on May 31. Platinum and palladium closed at $950.3 and $819, respectively. Silver futures for August expiration fell 0.12% and closed at $17.4 per ounce.
The Fed’s rate hike decision has been impacting precious metals over the past few weeks. Investors are watching economic data in the US. When the country’s economic status is stronger, it’s easier for Fed officials to increase the rate. A promising economy supports rising Treasury yields.
An increase in the interest is often negative for precious metals. Investors usually choose assets that are yield-bearing versus non-yield bearing assets. So, higher yields attract investors. As a result, precious metals could be less appealing. Precious metals could fall significantly if the Fed hikes the interest rate.