Gold Jumps $19.7 Higher Thanks to Fed Signals

Gold futures closed almost $20 higher on Tuesday (Jan. 11), helped by the dollar’s depreciation, as Federal Reserve Chairman Jerome Powell didn’t really send any strong messages than those previously signaled.

  • The gold futures were up $19.7, or 1.1%, at $1,818.5 per ounce.
  • Silver contracts were up 35 cents, or 1.56%, at $22.812 an ounce.
  • Platinum was up $39.6, or 4.24%, at $973.2 per ounce.
  • The palladium contract was up $12.90, or 0.7%, at $1,922.10 an ounce.

The gold market was supported by the weakening of the dollar index. The index measures the movements of the dollar against six major currencies in a basket of currencies and was 0.37% lower at 95.6314.

The gold market also received positive signs as Powell did not signal a different direction on interest rates. Powell told the Senate Banking Committee yesterday, “A normal supply chain will ease inflation pressures this year. But the Fed is not afraid to raise interest rates more than expected if inflation remains high.”

However, Powell took the view that the Fed’s plan to tighten monetary policy this year will not have an impact on the labor market because the U.S. economy is strong enough to deter the Fed from further massive stimulus.

In addition, Powell expects that the U.S. economy will be able to overcome the COVID-19 situation.

The Spot Market is Open

Wednesday, January 12, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
10.00
1,819.40
1,820.40
-2.30
-0.13%
1,818.70
1,823.80
Silver
10.00
22.71
22.81
-0.06
-0.26%
22.69
22.88
Platinum
10.00
968.00
978.00
-3.00
-0.31%
966.00
981.00
Palladium
10.00
1,858.00
2,008.00
-9.00
-0.48%
1,857.00
2,013.00
Rhodium
06.00
16,000.00
18,000.00
0.00
0.00%
16,000.00
18,000.00

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