Gold Closes $8.9 Lower as U.S. Treasury Yield Rises and Fed Statement

Gold futures closed lower on Tuesday (May 31) as markets were pressured by rising U.S. Treasury bond yields. Another issue was that the Federal Reserve (Fed) governors are in favor of raising interest rates by 0.50% at their next meeting to curb inflation.

  • The gold contract was down $8.9, or 0.48%, at $1,848.4 an ounce.
  • Silver was down 40.8 cents, or 1.85%, at $21.688 an ounce.
  • Platinum was up $25.3, or 2.68%, at $968.3 per ounce.
  • Palladium fell $48.50, or 2.36%, at $2,006.30 an ounce.

Gold futures came under pressure after the yield on 10-year U.S. Treasury bonds rose to 2.85%. The rise in bond yields increases the opportunity cost of owning gold. Gold is an asset that does not yield a return in the form of interest.

The gold market was negatively affected by the statement of Christopher Waller, one of the Fed governors, that the Fed needs to raise interest rates more and faster. If inflation does not slow down, he recommends that the Fed raise interest rates by 0.50% at each meeting starting with the June meeting until inflation reaches a manageable level.

The Conference Board reported that its consumer confidence index fell to 106.4 in May from 108.6 in April.

The index of confidence in the current economy and in the next six months also declined, with the Conference Board pointing out that consumer confidence has come under pressure from inflation and rising interest rates.

The Spot Market is Open

Wednesday, June 1, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.30
1,833.20
1,834.20
-4.20
-0.23%
1,832.50
1,839.30
Silver
11.30
21.43
21.53
-0.09
-0.40%
21.41
21.67
Platinum
11.30
964.00
974.00
-1.00
-0.10%
962.00
980.00
Palladium
11.00
1,954.00
2,104.00
+4.00
+0.21%
1,945.00
2,110.00
Palladium
05.00
14,150.00
16,150.00
0.00
0.00%
14,150.00
16,150.00

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