Higher Than Expected US Inflation Numbers Back Gold

Gold futures closed higher on Thursday (Feb. 10), with markets pressured by the appreciation of the dollar and the rise in U.S. Treasury bond yields after U.S. inflation figures rose more than expected.

  • The gold futures were up 80 cents, or 0.1%, at $1,837.40 per ounce.
  • Silver futures were up 18 cents, or 0.8%, at $23.522 an ounce.
  • The platinum contract was up $5.1, or 0.5%, at $1,042.50 per ounce.
  • The palladium contract was down $19.80, or 0.9%, at $2,265.30 an ounce.

According to the U.S. Department of Labor, the Consumer Price Index (CPI), which measures consumer price inflation, rose 7.5% in January from a year earlier. This is the highest level since February 1982 and an increase from 7.0% in December.

Core inflation (excluding energy and food prices) increased by 6% year-on-year. This is also the highest level in 40 years.

Inflation figures have risen more than expected, which could be a key factor supporting the U.S. Federal Reserve (Fed) in accelerating its rate hikes.

Economic analysts expect the U.S. Federal Reserve (Fed) to raise interest rates by no less than 0.5% at its meeting next month, after St. Louis Federal Reserve Chairman James Bullard said the information has given him a much more negative outlook and he wants a full 1.0% rate hike by July 1.

In addition, higher-than-expected U.S. inflation pushed the yield on 10-year U.S. Treasury bonds above 2% and the dollar index higher. The dollar index, which measures the dollar’s performance against six major currencies in a basket of currencies, rose 0.06% to 95.5530.

The Spot Market is Open

Friday, February 11, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
10.20
1,825.50
1,826.50
-1.10
-0.06%
1,823.60
1,828.60
Silver
10.20
23.08
23.18
-0.09
-0.39%
23.00
23.30
Platinum
10.20
1,023.00
1,033.00
-3.00
-0.29%
1,020.00
1,035.00
Palladium
09.45
2,174.00
2,324.00
-22.00
-1.00%
2,168.00
2,343.00
Rhodium
06.00
17,100.00
19,100.00
+1,350.00
8.57%
17,100.00
19,100.00

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