Gold Rises, Reaction to Fed Policy

Gold futures rose yesterday evening (November 4). This was supported by the decline in U.S. bond yields and the fact that the U.S. Federal Reserve (Fed) has rejected the premature rate hike.

  • Gold futures were up $29.6, or 1.68%, at $1,793.5 per ounce.
  • Silver futures were up 68 cents, or 2.93%, at $23.911 an ounce.
  • The platinum contracts were up $6.8, or 0.67%, at $1,029.3 per ounce.
  • The palladium contracts were up $9.20, or 0.5%, at $1,996.40 an ounce.

After the yield on the 10-year U.S. Treasury bond fell to 1.533%, the price of gold rallied.

Investors also reacted to the outcome of the Fed meeting that will reduce its quantitative easing (QE) bond-buying program by $15 billion per month starting in November, in line with market expectations.

This decision to reduce QE does not mean that the Fed will adjust its interest rate policy. A prerequisite for a change in interest rate policy, the Fed states, is that the labor market realizes its full potential, both in terms of employment figures and labor force participation.

Investors are looking ahead today to the release of non-farm payrolls for the month of October in the United States.

The Spot Market is Open

Friday, November 5, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,795.50
1,796.50
+3.70
0.21%
1,789.90
1,797.20
Silver
12.00
23.83
23.92
+0.06
0.27%
23.72
23.94
Platinum
12.00
1,030.00
1,040.00
+6.00
0.59%
1,022.00
1,041.00
Palladium
11.50
1,962.00
2,112.00
+22.00
1.13%
1,939.00
2,118.00
Rhodium
05.00
13,250.00
15,250.00
0.00
0.00%
13,250.00
15,250.00

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