Strong Dollar and Rising Bond Yields Push Gold Down $35

Gold futures fell sharply on Thursday (January 6) under pressure from the appreciation of the dollar. In addition, U.S. government bond yields rose after the Federal Reserve (Fed) released the minutes of its December meeting.

  • Gold fell $35.9, or 1.97%, at $1,789.2 per ounce.
  • Silver was down 98 cents, or 4.235%, at $22.19 an ounce.
  • The platinum contract was down $41.2, or 4.11%, at $960.7 per ounce.
  • The palladium contract was down $28.70, or 1.5%, at $1,873.90 an ounce.

The Fed Board released the minutes of its December meeting, which state that the Fed Committee supports a faster rate hike and encourages the Fed to reduce the size of its balance sheet after it begins raising rates. This is a sign that the Fed will not only reduce the size of its bond purchases under its QE program but also sell its holdings to reduce the size of its balance sheet, which is now more than $8 trillion.

The signal of Fed rate hikes sent the yield on the 10-year U.S. Treasury bond above 1.75% and caused the dollar index against the six major currencies in the basket of currencies to rise 0.16%, leaving it at 96.3169 last night.

The Spot Market is Open

Friday, January 7, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
10.25
1,793.10
1,794.10
+2.20
0.12%
1,789.20
1,793.90
Silver
10.25
22.14
22.24
-0.03
-0.14%
22.08
22.30
Platinum
10.25
965.00
975.00
+1.00
0.10%
960.00
976.00
Palladium
10.10
1,806.00
1,956.00
-10.00
-0.55%
1,800.00
1,962.00
Rhodium
06.00
16,000.00
18,000.00
0.00
0.00%
16,000.00
18,000.00

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