Weak Dollar Helped Gold to Close Higher

Gold futures closed higher on Friday (May 6) thanks to a weaker dollar. However, the trend that the U.S. Federal Reserve (Fed) will raise interest rates again put pressure on gold contract prices for the third week in a row.

  • The gold futures were up $7.1, or 0.38%, at $1,882.8 per ounce.
  • Silver was down 7.6 cents, or 0.34%, at $22.367 an ounce.
  • The platinum contract was down $17.4, or 1.79%, at $956 an ounce.
  • Palladium fell $154.20, or 7.1%, at $2,023.20 an ounce.

Gold contracts were supported by the depreciation of the dollar. The dollar index against the six major currencies in a basket of currencies fell 0.09% to 103.6600, with a weaker dollar making gold contracts cheaper for investors holding other currencies.

However, the rise in gold contract prices was limited after U.S. bond yields rose and U.S. labor market data was better than expected. This could encourage the Fed to raise interest rates again.

The U.S. Labor Department announced Friday that nonfarm payrolls rose by 428,000 in April. 400,000 jobs above analysts’ expectations.

The unemployment rate remained unchanged at 3.6% and was thus above analysts’ expectations of 3.5%. Average hourly earnings for employees rose by 0.3%, below the analysts’ forecast of 0.4%.

The Spot Market is Closed

Saturday, May 7, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
04.00
1,883.10
1,884.10
+6.30
+0.33%
1,865.90
1,879.20
Silver
04.00
22.32
22.44
-0.13
-0.58%
22.10
22.57
Platinum
04.00
956.00
966.00
-25.00
-2.55%
951.00
993.00
Palladium
04.00
1,972.00
2,122.00
-147.00
-6.94%
2,104.00
2,267.00
Rhodium
04.00
15,400.00
17,400.00
0.00
0.00%
15,400.00
17,400.00

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