Gold Closed Up $25.3 – Strong Stock Market Drop Supports Safe Haven Buying

Gold futures closed higher on Thursday (May 19) as falling equity markets and poor U.S. economic data boosted safe-haven gold buying.

  • The gold futures were up $25.3, or 1.39%, at $1,841.2 an ounce.
  • Silver futures were up 36.4 cents, or 1.69%, at $21.908 an ounce.
  • The platinum contract was up $29.3, or 3.17 percent, at $953.7 per ounce.
  • The palladium contract was down $14.20, or 0.71%, at $1978.40 an ounce.

Gold contracts were driven by the depreciation of the dollar and the decline in U.S. bond yields. The dollar index fell 1.05% against the six major currencies in a basket of currencies to 102.7240, while the yield on the 10-year U.S. Treasury bond fell to 2.837%.

After two consecutive trading days of declines on the U.S. stock markets, investors also bought gold as a safe haven. This was due to concerns about the impact of inflation and the acceleration of interest rate hikes by the Federal Reserve (Fed).

Worsening U.S. economic data is also spurring safe-haven buying. The National Association of Realtors (NAR) announced that home sales fell 2.4% in April to 5.61 million units. On a month-over-month basis, this is the lowest level since June 2020, impacted by rising home prices and mortgage rates.

According to the Labor Department, initial jobless claims rose by 21,000 last week to 218,000, the highest level since January.

The Spot Market is Open

Friday, May 20,2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
10.40
1,841.20
1,842.20
-0.30
-0.02%
1,836.20
1,845.30
Silver
10.40
21.85
21.95
-0.05
-0.25%
21.78
22.02
Platinum
10.40
957.00
967.00
-4.00
-0.42%
952.00
973.00
Palladium
10.30
1,936.00
2,086.00
+3.00
+0.16%
1,923.00
2,096.00
Rhodium
05.00
14,150.00
16,150.00
0.00
0.00%
14,150.00
16,150.00

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