Gold Closes Down $7.4 as Dollar Strengthens – Powell Statement Hints at Higher Rate Hikes

Gold futures closed lower on Thursday (April 21) as markets were pressured by a stronger dollar and higher U.S. bond yields. This was compounded by fears that the U.S. Federal Reserve (Fed) will accelerate interest rates to curb inflation.

  • The gold contract was down $7.4, or 0.38%, at $1,948.2 an ounce.
  • Silver was down 65 cents, or 2.57%, at $24.621 an ounce.
  • The platinum contract was down $19.2, or 1.95%, at $967.8 an ounce.
  • The palladium contract was down $41.90, or 1.7%, at $2,420.20 an ounce.

The dollar index rose 0.19% against the six major currencies in a basket of currencies to $100.5780. A strong dollar makes gold contracts more expensive for holders of other currencies.

The yield on 10-year U.S. Treasury bonds rose again to 2.921%. A rise in U.S. Treasury bond yields increases the opportunity cost of owning gold, as gold is an asset that does not yield interest.

The gold market is also under pressure after fears arose that the U.S. Federal Reserve might raise interest rates faster to curb inflation.

Fed Chairman Jerome Powell delivered a keynote address on the global economy at the International Monetary Fund (IMF) meeting last night, saying, “accelerating interest rate hikes to curb inflation is an appropriate action. And there is a possibility that the Fed may raise interest rates by 0.5% at its May meeting.”

The Spot Market is Open

Friday, April 22, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.00
1,950.90
1,951.90
-1.00
-0.05%
1,945.90
1,954.80
Silver
11.00
24.50
24.60
-0.14
-0.57%
24.41
24.76
Platinum
11.00
968.00
978.00
+2.00
0.21%
964.00
979.00
Palladium
11.00
2,352.00
2,502.00
+13.00
0.56%
2,332.00
2,503.00
Rhodium
05.00
17,700.00
19,700.00
0.00
0.00%
17,700.00
19,700.00

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