Gold Rises Slightly by $2.6 – U.S. GDP Contracts in Q1

Gold futures closed higher on Thursday (April 28) as investors bought gold as a safe haven after reports that the U.S. economy contracted more than expected in the first quarter of this year.

  • The gold futures were up $2.6, or 0.14%, at $1,891.3 per ounce.
  • Silver was down 32.4 cents, or 1.38%, at $23.181 an ounce.
  • The platinum was up 70 cents, or 0.08%, at $911.1 per ounce.
  • The palladium contract was up $15, or 0.68%, at $2,210.10 an ounce.

Investors are buying gold as a safe haven after the U.S. Commerce Department announced that gross domestic product (GDP) contracted 1.4% QoQ in Q1/22. This is the first decline since the recession caused by the COVID-19 epidemic in early 2020.

Deutsche Bank forecasts that the U.S. economy will most likely enter a recession in late 2023 and early 2024 as the Federal Reserve has raised interest rates to curb inflation.

Meanwhile, initial jobless claims in the U.S. fell slightly, as expected.

According to the Labor Department, initial jobless claims fell by 5,000 to 180,000 last week. This is in line with analysts’ forecasts.

At the same time, the number of Americans continuing to claim unemployment benefits fell by 1,000 to 1.41 million, the lowest level since early 1970.

Although gold futures continued to gain momentum, the strength of the dollar reduced the attractiveness of gold. This is because gold contracts become more expensive for holders of other currencies.

The dollar index against the six major currencies of a basket of currencies rose 0.65% to 103.6240.

The Spot Market is Open

Friday, April 29, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,906.00
1,907.00
+11.80
+0.62%
1,892.60
1,907.00
Silver
12.00
23.26
23.36
+0.13
+0.56%
23.11
23.40
Platinum
12.00
922.00
932.00
+5.00
+0.55%
912.00
933.00
Palladium
11.30
2,165.00
2,315.00
+11.00
+0.51%
2,154.00
2,318.00
Rhodium
05.00
16,800.00
18,800.00
0.00
0.00%
16,800.00
18,800.00

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