Gold futures closed higher on Monday (Jan. 31), with the market rallying as investors bought speculation. Gold prices had fallen sharply last week following the Fed rate decision and Powell’s press conference. In addition, tensions in Ukraine are also another factor of uncertainty.
- Gold futures were up $9.80, or 0.6%, at $1,796.40 per ounce.
- Silver futures were up 9 cents, or 0.4%, at $22.393 an ounce.
- The platinum contract was up $14.2, or 1.4%, at $1,020.80 per ounce.
- The palladium contract was down $19.50, or 0.8%, at $2,355.80 an ounce.
Gold contracts closed the market back in positive territory. The decisive factor was the investors who took the opportunity after the drastic price drop last week and took the plunge.
The gold price closed last week below the mark of $ 1,800 which was certainly caused by the interest rate decision and the FOMC press conference. The Fed sees room for interest rate hikes but left the interest rate unchanged for now. Various financial institutions are now forecasting that the Fed will raise interest rates several times this year, such as the Bank of America, which even predicts up to 7 interest rate hikes.
Atlanta Fed President Rafael Bostic said yesterday that the Fed could raise interest rates by a surprise 0.50% if inflation remains high.
In addition, the gold price was supported by the weakening of the dollar. The dollar index fell by 0.11% to 97.16.
Investors are waiting for the US non-farm payrolls figures on Friday. Analysts predict that non-farm payrolls in the U.S. will increase by only 178,000 in January and the unemployment rate will remain unchanged at 3.9%.
The Spot Market is Open
Tuesday, February 1, 2022