The US Consumer Price Index report on 10th May showed a little to no change from year on year, dropping from 5% to 4.9% inflation rate. The expected targeted inflation rate of 2%-3% is yet to be achieved by the Fed, hence, a sentiment in the market arose that there will be further hikes in the interest rate on 14th June at the FOMC meeting.
A mixed impact from the market was seen regarding metal products. Gold remained well above $2000 as a recession fear by some investors was persistent after the CPI numbers were released. Gold futures moved 0.1% to $2038.40 while Spot Gold also moved 0.1% upwards to $2032.11.
On the other hand, the recession fear heavily impacted copper prices due to its high industrial usage, dropping them by 1.7% after the inflation report, nonetheless, steadying at a level later on. Other metal products, such as silver and platinum maintained their levels, not moving more than 0.1% in either direction. Traders are anticipating some kind of hawkish statements from the Fed in the upcoming days; hence a distress of economic slowdown has increased the safe haven metals demand, stabilizing them in the international markets.