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Gold just spiked higher after weak economic data, DC shooting

Gold futures spiked higher suddenly Wednesday morning after reports raised concerns about the state of the economy. A shooting near the nation’s capital involving members of Congress also added to fears, sending investors into the safe haven trade.

U.S. gold futures for August delivery traded about 0.9 percent higher near $1,279. Earlier, futures hit a high of $1,284.60, the highest since Friday.

The VanEck Vectors Gold Miners ETF (GDX) briefly climbed more than 1.5 percent in morning trade.

Gold 12-hour performance

The move happened immediately after retail sales and the consumer price index (CPI) — a key inflation metric — came in weaker than expected. Retail sales fell 0.3 percent last month, marking their biggest drop in 16 months, while CPI declined 0.1 percent in May.

After the disappointing economic reports, gold futures reversed losses to trade about 1 percent higher.

Gold’s move higher also followed news that House Majority Whip Rep. Steve Scalise was shot in Virginia and is in stable condition.

Two U.S. Capitol Police officers were also shot, according to NBC. Several congressmen and at least two senators were present, Sen. Rand Paul, R-Ky., told MSNBC. They were practicing for a bipartisan charity baseball game set to take place on Thursday at Nationals Park.

U.S. stocks opened higher ahead of the Federal Reserve’s decision on monetary policy, due in the afternoon. Traders expect another interest rate hike and are listening for any clues on inflation expectations, as well as the the timing of the next rate rise and balance sheet reduction.

—CNBC’s Jacob Pramuk contributed to this report.

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