Yesterday evening (December 2), gold futures fell to their lowest level in more than seven weeks following news that the U.S. Federal Reserve (Fed) possibly raise interest rates sooner than expected. With news of the new COVID strain Omicron, people did not see the need for safe-haven assets, as the strain appears to cause mostly mild symptoms.
- Gold contract was down $21.6, or 1.21%, at $1,762.7 per ounce.
- Silver was down 2.3 cents, or 0.1%, at $22.316 an ounce.
- The platinum contract was down $2.1, or 0.22%, at $933.1 an ounce.
- Palladium was up $17.90, or 1%, at $1,771.40 an ounce.
An earlier-than-expected end to the quantitative easing (QE) bond-buying program was signaled by the chairman of the U.S. Federal Reserve (Fed), adding that interest rates can be expected to be raised sooner than expected. As the Fed may cut its QE program by more than $15 billion per month, a move that will be discussed at its Dec. 14-15 monetary policy meeting.
News of the new COVID variant calms fears of another U.S. economic shutdown, as the new variant causes mainly mild symptoms.
Besides the news about the new COVID variant Omicron, the gold market was being pressured by the strong dollar. Appreciation of the dollar makes gold contracts more expensive for investors who hold other currencies.
The dollar’s movement index against the six major currencies in a basket of currencies increased by 0.13% to 96.1540.
The Spot Market is Open
Friday, December 3, 2021