Platinum and palladium were each little changed from yesterday.
Singapore Summit Goes Smoothly
With no fireworks (neither good nor bad) at the initial encounter between President Trump and Kim Jong-un, markets made no major moves when trading opened.
There was little substantive talk of policy at the Singapore summit. Most observers agreed that the event was primarily a photo op, but it was nonetheless symbolic of greater cooperation among the two sides.
In a joint statement released after the camera-friendly gathering, the U.S. proposed ending its war exercised near the Korean peninsula in exchange for North Korea's tentative commitment to dismantle its nuclear weapons program.
Investors didn't pile into bonds following the apparent success of the summit. The 10-year Treasury yield still held around 2.97%.
The Shanghai gold price stood its ground around $1,302 an ounce (268.33 yuan per gram).
Forex markets were largely unchanged, as well. The greenback receded from yesterday's gains to trade just above 93.5 on the DXY dollar index.
Attention Turns to Fed, Inflation
Traders and investors shifted their emphasis toward the end of the FOMC meeting tomorrow.
The Fed closely watches inflation, and the latest data likely supports the case for more rate hikes.
According to the Bureau of Labor Statistics (BLS), the consumer price index (CPI) was up 0.2% in May. CPI rose 2.8% year-on-year, meeting expectations. This is still the fastest pace for inflation in six years.
Given the uptick in inflation, the Fed is all but certain to raise rates this week.
Stocks on Wall St ended yesterday just barely in positive territory. Indices were mixed at Tuesday's opening bell.
Shares were also mixed in Europe but closed higher in Asia. The Shanghai Composite index rallied 1.2% overnight.
September crude futures in Shanghai traded at 468.1 yuan per barrel, slightly above $73/bbl.
OPEC's years-long commitment to production cuts may be coming to an end. Russia is increasing its oil shipments by 150,000 barrels per day and Saudi Arabia is adding 100,000 barrels per day to its exports.
Crude oil prices reversed earlier losses during Monday's session. WTI opened mostly flat at $66/bbl this morning while Brent crude was down 0.5% to $76/bbl.
In other news, a survey of small businesses in the U.S. revealed the strongest positive sentiment since the early 1980s.
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