Fed Signal Pushes Gold Price Downwards

Gold futures fell last night (Nov. 18) as investors are concerned due to recent data suggesting the Federal Reserve (Fed) may raise interest rates sooner than expected.

  • Gold was down $8.8, or 0.47%, at $1,861.4 per ounce.
  • Silver was down 26.7 cents, or 1.06%, to close at $24.9 an ounce.
  • Platinum was down $12.7, or 1.19%, at $1,056.4 per ounce.
  • Palladium fell $47.10, or 2.2%, at $2,137.40 an ounce.

Gold contracts were pressured by fears that the U.S. Federal Reserve might raise interest rates faster than previously thought.

The Fed is expected to raise interest rates by 0.25% beginning in the third quarter of 2022 and continue to raise rates by 0.25% quarterly until the real interest rate, or the interest rate net of inflation reaches 0%.

In addition, recent data pointing to strength in the labor market and the U.S. economy are putting pressure on gold prices.

According to the Labor Department, initial claims for jobless benefits fell by 1,000 to 268,000 last week. This is the lowest level since the beginning of the COVID-19 outbreak in the United States.

The Mid-Atlantic region’s manufacturing index rose to 39.0 in November, its highest level in seven months from 23.8 in October.

In addition, the gold market is also pressured by traders’ profit-taking after gold prices rose.

The Spot Market is Open

Friday, November 19, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.50
1,863.30
1,864.30
+4.80
0.26%
1,857.70
1,864.60
Silver
11.50
24.90
25.00
+0.13
0.52%
24.73
25.00
Platinum
11.50
1,056.00
1,066.00
+11.00
1.05%
1,044.00
1,067.00
Palladium
11.10
2,088.00
2,238.00
+16.00
0.77%
2,068.00
2,238.00
Rhodium
06.00
13,300.00
15,300.00
0.00
0.00%
13,300.00
15,300.00

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