Gold Gains After Dollar Weakness

Gold futures rose last night (November 1) as a result of the devaluation of the dollar, and the dwindling purchasing power.

  • Gold futures were up $11.9, or 0.67%, at $1,795.8 per ounce.
  • Silver futures were up 12.4 cents, or 0.52 percent, at $24.073 an ounce.
  • The platinum contracts were up $46.6, or 4.57%, at $1,067.3 per ounce.
  • The palladium futures rose $72, or 3.6 percent, at $2,052.30 an ounce.

Investors are buying gold as a safe haven after data shows weakness in the U.S. economy.

According to the US Institute of Supply Management (ISM), the US manufacturing index fell to 60.8 in October. The U.S. manufacturing index was impacted by a decline in new orders, reaching a 16-month low.

While the U.S. manufacturing Purchasing Managers’ Index (PMI) fell to 58.4 in October, its lowest level in 10 months. The decline in the PMI index was caused by a shortage of raw materials for production.

In addition, an important factor, namely the depreciation of the dollar, is also a positive factor for the gold market. This makes gold contracts less expensive for investors holding other currencies.

  • The movement index of the dollar DXY against the six other major currencies in a basket of currencies fell 0.25% to 93.8817.
  • The US dollar weakened against the Swiss franc to 0.9092 francs from 0.9154 francs.
  • The dollar was lower against the Canadian dollar to 1.2370 Canadian dollars from 1.2373 Canadian dollars.
  • The dollar strengthened against the yen at 113.98 yen from 113.91 yen.
  • The euro was higher against the dollar at $1.1605 from $1.1560.
  • The pound fell to $1.3657 from $1,3690.
  • The Australian dollar fell to $0.7518 from $0.7525.

The Spot Market is Open

Tuesday, November 2, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,793.40
1,794.40
-0.10
-0.01%
1,789.10
1,795.30
Silver
12.00
23.95
24.05
-0.09
-0.35%
23.90
24.14
Platinum
12.00
1,056.00
1,066.00
-8.00
-0.75%
1,051.00
1,075.00
Palladium
11.50
1,982.00
2,132.00
-4.00
-0.20%
1,970.00
2,135.00
Rhodium
05.00
13,250.00
15,250.00
0.00
0.00%
13,250.00
15,250.00

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