Strong Dollar Puts Pressure on Commodities

Gold contracts closed in the red last night (Nov. 15) as investors continue to take profits after gold closed seven straight days in the green. The appreciation of the U.S. dollar and U.S. Treasury bond yields are also factors putting pressure on the yellow metal.

  • Gold contracts were down $1.9, or 0.1%, at $1,866.6 per ounce.
  • Silver was down 24.1 cents, or 0.95%, at $25.105 an ounce.
  • Platinum was up $7.7, or 0.71%, at $1,096.9 per ounce.
  • The palladium contracts were up $38.40, or 1.8%, at $2,156.10 an ounce.

Gold contracts close weaker as the yield on the 10-year U.S. Treasury bond rose to 1.615%. This makes the opportunity cost of gold higher as gold is an asset that does not yield interest.

The strength of the dollar also makes gold contracts more expensive for investors holding other currencies.

  • The movement index of the dollar DXY against the six other major currencies in a basket of currencies increased by 0.30% to 95.4078.
  • The dollar strengthened against the yen at 114.08 yen from 113.95 yen.
  • The dollar strengthened against the Swiss franc at 0.9246 francs from 0.9208 francs.
  • The US dollar was lower against the Canadian dollar to 1.2510 Canadian dollars from 1.2551 Canadian dollars.
  • The euro was lower against the dollar at $1.1385 from $1.1443.
  • The pound rose to $1.3427 from $1.3417.
  • The Australian dollar rose to $0.7350 from $0.7331.

The Spot Market is Open

Tuesday, November 16, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.10
1,867.30
1,868.30
+5.10
0.27%
1,861.40
1,869.90
Silver
11.10
25.15
25.25
+0.10
0.42%
25.02
25.28
Platinum
11.10
1,090.00
1,100.00
+3.00
0.28%
1,083.00
1,104.00
Palladium
11.10
2,084.00
2,234.00
-8.00
-0.38%
2,079.00
2,245.00
Rhodium
06.00
13,500.00
15,500.00
0.00
0.00%
13,500.00
15,500.00



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