Gold Rises $6.9 as Equity Markets Stumble

Gold futures closed higher on Thursday (May 5) due to the decline in U.S. equity markets and poor U.S. economic data. These drive the purchase of gold as a safe haven.

  • The gold futures were up $6.9, or 0.37%, at $1,875.7 per ounce.
  • Silver futures were up 4.1 cents, or 0.18%, at $22.443 an ounce.
  • The platinum was down $6.2, or 0.63%, at $973.4 an ounce.
  • Palladium fell $58.60, or 2.6%, at $2,177.40 an ounce.

Investors are buying gold as a safe haven after the U.S. stock market plunged. The Dow fell more than 1,000 points as investors feared the Fed might raise interest rates by as much as 0.75% at its meeting next month to curb inflation.

The CME Group’s FedWatch tool indicates that investors now have a 75% expectation that the Fed will raise rates by 0.75% at its June 14-15 meeting, up from 19% the previous month.

In addition, weak U.S. economic data is also a factor supporting safe haven buying. The U.S. Department of Labor announced that U.S. nonfarm payroll productivity fell 7.5% in the first quarter of 2022, the largest decline since the third quarter of 1947, after rising 6.3% in the fourth quarter.

Initial jobless claims in the United States rose by 19,000 to 200,000 last week, the highest level since February. It was the largest weekly increase since July 2021.

The Spot Market is Open

Friday, May 6, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/Hight
Gold
12.00
1,876.40
1,877.40
-0.50
-0.03%
1,865.90
1,879.20
Silver
12.00
22.39
22.49
-0.08
-0.36%
22.10
22.57
Platinum
12.00
954.00
964.00
-27.00
-2.75%
951.00
993.00
Palladium
11.30
2,114.00
2,264.00
-5.00
-0.24%
2,104.00
2,267.00
Rhodium
05.00
15,400.00
17,400.00
0.00
0.00%
15,400.00
17,400.00

Leave a Reply

Change Language
%d bloggers like this: