Business News Asia
Gold futures closed slightly higher on Wednesday (June 1) as the dollar’s strength and a surge in US Treasury yields put pressure on the market.
- The gold contract was up 30 cents, or 0.02%, at $1,848.7 per ounce.
- Silver contracts were up 22.7 cents, or 1.05%, to close at $21.915 per ounce.
- The platinum contract was up $28.1, or 2.9%, at $996.4 an ounce.
- The palladium contract was down $4.40, or 0.21%, at $2,001.90 an ounce.
Gold contracts stayed within a narrow range for the rest of the day before closing slightly higher. This is because the strong dollar makes gold contracts more expensive for investors holding other currencies.
The dollar index against the six major currencies in a basket of currencies rose 0.73% to 102.4980 points.
Gold futures also came under pressure when 10-year U.S. Treasury bond yields rose to 2.944%, as rising bond yields increase the opportunity cost of owning gold. Gold is an asset that does not yield income in the form of interest.
Investors are looking at the U.S. labor market data this week. Today, the ADP labor market data from May and the weekly initial jobless claims will be published. The number of non-farm jobs from the month of May will be published tomorrow.
Investors are also keeping an eye on the Federal Reserve’s (Fed) meeting on June 14-15, with expectations that the Fed will raise interest rates by at least 0.50% at its June and July meetings to combat inflation.
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Thursday, June 2, 2022