Gold Closes up $7 as Markets Await Fed Meeting Outcome

Gold futures closed slightly higher on Tuesday (May 3), helped by the depreciation of the dollar. U.S. Treasury yields fell below 3% and investors are waiting for the outcome of the Federal Reserve (Fed) meeting.

  • The gold contract was up $7, or 0.38%, to close at $1,870.6 per ounce.
  • Silver futures were up 8.1 cents, or 0.36%, at $22.665 an ounce.
  • The platinum contract was up $25.8, or 2.77 percent, at $958.6 per ounce.
  • Palladium was up $22.30, or 1%, at $2,238.30 an ounce.

Gold contracts recovered after the dollar index against the six major currencies in a basket of currencies fell 0.27% to 103.4620 and the yield on the 10-year U.S. Treasury note fell to 2.940%.

Investors’ focus is on the outcome of the Fed’s monetary policy meeting, which will be released on Thursday.

The CME Group’s FedWatch tool indicates that investors are almost 100% confident that the Fed will raise rates by 0.50% at this meeting. This would be the first time since 2000 that the Fed has raised rates by 0.50%.

Investors will also be watching to see if the Fed will raise interest rates and shorten the balance sheet (quantitative tightening) at this meeting after U.S. inflation hits its highest level in 40 years.

The Spot Market is Open

Wednesday, May 4, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,865.40
1,866.40
-2.60
-0.14%
1,861.20
1,870.50
Silver
12.00
22.56
22.66
+0.04
+0.16%
22.50
22.67
Platinum
12.00
969.00
979.00
+8.00
+0.83%
961.00
979.00
Palladium
12.00
2,198.00
2,348.00
+8.00
+0.37%
2,188.00
2,350.00
Rhodium
05.00
16,800.00
18,800.00
0.00
0.00%
16,800.00
18,800.00

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