Gold Closes Below $1,900 on Strong Dollar and Fed Rate Hike Concerns

Gold futures fell to a two-month low on Monday (April 25) as the dollar strengthened and fears that the U.S. Federal Reserve (Fed) will accelerate rate hikes.

  • The gold contract was down $38.3, or 1.98%, at $1,896 an ounce.
  • Silver was down 58.9 cents, or 2.43%, at $23.67 an ounce.
  • The platinum contract was down $22.4, or 2.42%, at $905 per ounce.
  • Palladium fell 254.20 points, or 10.69%, at $2,122.10 an ounce.

Gold futures fell after the dollar index against the six major currencies in a basket of currencies rose 0.53% to 101.7530. The stronger dollar made gold contracts more expensive for investors holding other currencies.

In addition, investors are concerned about the Fed raising interest rates after Fed Chairman Jerome Powell said the Fed will act faster to fight inflation. He also hinted that the Fed could raise rates by 0.50% at its May meeting. This would be the first time the Fed has raised rates by 0.50% since 2000. At the same time, however, the Fed does not want to create a recession, as Powell recently stated.

The Spot Market is Open

Tuesday, April 26, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.10
1,903.60
1,904.70
+5.20
0.27%
1,897.50
1,906.40
Silver
12.10
23.75
23.84
+0.14
0.57%
23.61
24.00
Platinum
12.10
928.00
938.00
+7.00
0.76%
921.00
940.00
Palladium
12.10
2,123.00
2,273.00
+71.00
3.46%
2,052.00
2,280.00
Rhodium
05.00
16,650.00
18,650.00
0.00
0.00%
16,650.00
18,650.00

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