Gold Closes Higher on Falling Equities as Focus Turns to U.S. CPI Data

Gold futures closed higher on Monday (April 11) as investors bought gold as a safe haven. U.S. equity markets ended Monday’s trading in negative territory, and the Russian-Ukrainian crisis is unlikely to be resolved.

  • The gold futures were up $2.6, or 0.13%, at $1,948.2 per ounce.
  • Silver futures were up 16.4 cents, or 0.66%, at $24.987 an ounce.
  • The platinum was up $2.2, or 0.23%, at $977.8 an ounce.
  • The palladium contract was down $3.30, or 0.1%, at $2,416.80 an ounce.

Investors are buying gold as a safe haven after the U.S. stock markets fell yesterday on fears the Federal Reserve (Fed) will accelerate interest rates to curb inflation.

The DOW closed on Monday with a minus of 1.19% at 34,308.08 points.
The S&P 500 closed Monday with a minus of 1.69% at 4,412.53 points.
The NASDAQ closed down 2.18% at 13,411.96 points.

While the financial market expects the Fed to raise rates by 0.50% at its May and June meetings, rates are expected to reach 2.50-2.75% by the end of this year. That would be more than 2.4%, a level that most Fed officials consider neutral.

Investor focus is on US inflation this week. The U.S. Department of Labor will release today’s Consumer Price Index (CPI). The Producer Price Index (PPI), will be released on Wednesday. Analysts expect both CPI and PPI to continue to rise.

In February, the U.S. CPI was up 7.9% year over year, the highest level since January 1982.

The PPI rose 10% in February from a year earlier.

Analysts expect the consumer price index to rise by 8.5% year-on-year in March, which would be the highest level since 1981. For the PPI, the analysts expect an increase of 10.6%.

The Spot Market is Open

Tuesday, April 12, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
10.40
1,959.00
1,960.00
+4.90
0.25%
1,950.30
1,960.00
Silver
10.40
25.17
25.27
+0.10
0.42%
24.96
25.29
Platinum
10.40
981.00
991.00
+4.00
0.41%
976.00
992.00
Palladium
08.40
2,362.00
2,512.00
+5.00
0.21%
2,349.00
2,524.00
Rhodium
05.00
18,400.00
20,400.00
0.00
0.00%
18,400.00
20,400.00

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