Strong Employment Figures Support Fed Plans – Gold Strong at the End of the Year

Gold futures closed higher last night (Dec. 30), helped by a drop in U.S. bond yields.

  • The gold futures were up $8.3, or 0.46%, at $1,814.1 per ounce.
  • Silver futures were up 20.2 cents, or 0.88%, at $23.06 an ounce.
  • The platinum contract was down $5.4, or 0.56%, at $964.6 per ounce.
  • Palladium was down $3.80, or 0.2%, at $1,983.20 an ounce.

Gold futures moved in response to the 10-year U.S. Treasury bond yield, which fell to 1.529% overnight, reducing the opportunity cost of owning gold, as gold does not yield interest.

The gold market has come under pressure after the Fed Board signaled that the Fed will take proactive measures to curb inflation. Among them is an accelerated reduction in the monthly bond-buying limit. Finally, in the latest interest rate forecast (dot plot), most Fed officials predict that there will be three rate hikes in 2022.

The good U.S. labor market data are supporting the Fed’s plan. The number of initial claims for unemployment benefits fell by 8,000 to 198,000 last week, the Labor Department announced.

The number of Americans filing for unemployment benefits for the first time fell to 199,250, the lowest level since Oct. 25, 1969.

The Spot Market is Open

Friday, December 31, 2021

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
09.40
1,816.00
1,817.00
+1.50
0.08%
1,814.40
1,820.00
Silver
09.40
23.08
23.17
+0.06
0.26%
23.01
23.23
Platinum
09.40
961.00
971.00
+1.00
0.10%
959.00
974.00
Palladium
09.00
1,896.00
2,046.00
-9.00
-0.47%
1,896.00
2,060.00
Rhodium
06.00
13,300.00
15,300.00
0.00
0.00%
13,300.00
15,300.00

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