Los Angeles CA, June 14 (Tangible Investments) — by James O’Dell — Gold and Silver prices rallied in early trading on Wednesday as interest rate hike all but expected. Gold is up 0.83 percent to $1,276.60 an ounce after gaining $0.60 on Tuesday to close at $1,266.10 an ounce.

Silver is up 2.41 percent to $17.21 an ounce after easing $0.13 on Tuesday to close at $16.81 an ounce. The Gold/Silver ratio rose to 75.32. Platinum is up 2.28 percent at $943.00 an ounce. Palladium is up 1.15 percent to $878.00 an ounce.

Gold rallied sharply in early trading on Wednesday after weaker-than-expected retail sales and CPI reports raised concerns about the economy. Retail sales declined 0.3 percent on expectations of +0.1 percent last month, marking their biggest drop in 16 months.

The Consumer Price Index (CPI), fell 0.1 percent in May, adding to investor concerns over the decline in recent economic data.

Analysts Expect Dovish Rate Hike

The Federal Open Market Committee (FOMC) meeting ends today at 2:30 ET, most likely with a quarter percent rate hike. “The real surprise won’t be the rate hike, it’ll be more in the language (of the statement),” said Capital Economics analyst Simona Gambarini.

“Much of the reaction in Gold prices will depend on whether there is any mention of further tightening ahead, any reassessment of current growth conditions or inflation expectations.”

Brown Brothers Harriman says that it is expecting a “dovish” interest-rate hike from the FOMC on Wednesday.

“Investors are more interested in the forward guidance rather the rate move itself,” said BBH. Daniel Hynes, of ANZ, believes Gold can hold above $1,250-an-ounce despite the threat of higher U.S. interest rates.

“We see Gold holding above USD1,250/oz in the short term. Safe-haven buying has supported Gold prices over the past six months, and rising geopolitical risks – particularly in the US – are likely to propel prices even higher,” said Hynes.

It’s important to protect your hard earned wealth during these times of economic and geopolitical uncertainty. At Tangible Investments, it doesn’t matter whether you’re new to precious metals or a seasoned veteran, you will always be dealing with top industry experts.

Take a moment and browse our vast selection of valuable collectibles, then call Toll Free 1.888.655.9255 today. Let the helpful staff at Tangible Investments assist you in your next purchase or sale. You may also wish to click here to check out our eBay store. Tangible Investments is the leading buyer of rare, Gold and Silver coins, art, antiques, diamonds, sterling and flatware. We also loan against anything of value and offer more money at half the loan cost.