Gold Closed Up $17.6 on Weak Dollar and Safe Haven Buying

Gold futures closed higher for a fourth straight day on Tuesday (May 24), supported by a weaker dollar and safe-haven buying after the U.S. released poor economic data.

  • The gold futures were up $17.6, or 0.95%, at $1,865.4 per ounce.
  • Silver contracts were up 34 cents, or 1.57%, at $22.063 per ounce.
  • The platinum contract was down $7.4, or 0.78%, at $942.9 an ounce.
  • The palladium futures were up $19.90, or 1.01%, at $1,986.60 an ounce.

Gold futures closed in positive territory after the dollar index fell 0.21% to $101.8580 against the six major currencies in a basket of currencies. A weaker dollar would make gold contracts cheaper for investors holding other currencies.

The deteriorating U.S. economic data is also driving safe-haven gold buying. The U.S. Commerce Department reported that new home sales fell 16.6% to 591,000 units in April. This was the lowest level in two years, down from 709,000 units in March.

The preliminary U.S. manufacturing purchasing managers’ index fell to 57.5 from 59.2 in April, a three-month low, while the services purchasing managers’ index fell to a low of 57.5. The manufacturing purchasing managers’ index fell to 53.5 from 55.6 in April, the lowest level in four months.

Investors will keep an eye on the minutes of the Federal Reserve’s (Fed) May meeting on Wednesday to find the direction of the Fed’s interest rates and balance sheet tightening (Quantitative Tightening : QT).

The Spot Market is Open

Wednesday, May 25, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,862.00
1,863.00
-4.40
-0.24%
1,859.20
1,868.70
Silver
12.00
22.03
22.13
-0.05
-0.25%
21.95
22.22
Platinum
12.00
953.00
963.00
-1.00
-0.10%
951.00
966.00
Palladium
12.00
1,959.00
2,109.00
+15.00
+0.77%
1,934.00
2,109.00
Rhodium
05.00
14,450.00
16,450.00
0.00
0.00%
14,450.00
16,450.00

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