Gold futures closed lower on Wednesday (March 2), after a rise the previous day. The U.S. stock market has rallied, and in addition, the rise in U.S. Treasury yields also weighs on the market.
- The gold contract was down $21.5, or 1.11%, at $1,922.3 per ounce.
- Silver was down 35.1 cents, or 1.37%, at $25.19 an ounce.
- The platinum contract was up $16.1, or 1.53%, at $1,068 per ounce.
- The palladium futures rose $127, or 5%t, at $2,664.90 an ounce.
The price of gold declined after a sharp rise in U.S. stock markets last night. The Dow rose nearly 600 points, while the NASDAQ and S&P500 gained more than 1.5% after Federal Reserve Chairman Jerome Powell signaled a 0.25% rate hike in the month of March, which was lower than investors’ expectations of 0.50%.
“We have an expectation that inflation will peak and begin to come down this year. To the extent inflation comes in higher or is more persistently high […]we would be prepared to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings,”Federal Reserve Chair Jerome Powell
In the meantime, strong U.S. labor market data is providing some calm to investors in the current turbulent times. According to ADP, the number of private-sector jobs rose by 475,000 in February.
In addition, the rise in U.S. Treasury yields has also put pressure on the gold price.
The Spot Market is Open
Thursday, March 3, 2022