Gold futures rose again to the mark of $ 1,800 as investors buy gold as a safe investment. The U.S. published the gross domestic product (GDP) figures for the third quarter and the weakening of the dollar also helps gold up.
- Gold futures were up $3.8, or 0.21%, at $1,802.6 per ounce.
- Silver was down 7.1 cents, or 0.29%, at $24.12 an ounce.
- The platinum contracts were up $4.6, or 0.45%, to close at $1,023.9 per ounce.
- The palladium futures were up $15.10, or 0.8%, at $1,989.40 an ounce.
Investors buy gold as a safe haven after the U.S. Commerce Department reported that GDP growth for the third quarter showed growth of only 2.0%, lower than analysts’ forecasts of 2.7%. It is the lowest growth rate in more than a year.
The decline is due to current policies that caused a shortage of raw materials in the manufacturing sector. This affects both the supply chain and consumer spending figures.
In addition, the weakening of the dollar is a positive factor for the gold market because it makes it cheaper and more attractive for investors who hold other currencies.
The movement index of the dollar DXY compared to six other major currencies in a basket of currencies was 0.49% lower at 93.3484.
WTI crude futures closed higher overnight (Oct. 28) as investors took the plunge following the previous more than 2% drop in oil prices.
- WTI crude futures were up 15 cents, or 0.2%, at $82.81 a barrel.
- BRENT crude futures were down 26 cents, or 0.3%, at $84.32 a barrel.
Investors buy WTI crude oil contracts after the contract price fell 2.4% on Wednesday, the WTI crude oil contract closed higher. Meanwhile, Brent crude futures remained in the red as the market continues to be pressured by the rise in U.S. crude inventories.
The EIA reported that U.S. crude oil inventories rose by 4.3 million barrels last week, exceeding the 100,000 barrel decline expected by analysts. Earlier, the API reported that U.S. crude oil inventories rose by 2.3 million barrels.
Market participants are watching the situation in Iran very closely after Iran agreed to start negotiations on the restoration of the 2015 nuclear agreement. The agreement was negotiated with the European Union (EU).
Investors are also watching the November 4 meeting of OPEC and OPEC+, which is expected to set oil production policy for December.
The Spot Market is Open
Friday, October 29, 2021