Gold futures closed higher Tuesday (June 7) on a weak dollar and safe-haven buying amid concerns about the global economic outlook. Investors are looking ahead to the release of U.S. inflation figures on Friday.
- The gold futures were up $8.4, or 0.46%, at $1,852.1 per ounce.
- Silver futures were up 8.6 cents, or 0.39%, at $22.178 an ounce.
- The platinum contract was down $17.1, or 1.66%, at $1,012.9 an ounce.
- The palladium contract was down $30.70, or 1.5%, at $1,965.40 an ounce.
Gold contracts were driven by the depreciation of the dollar. The dollar index fell 0.13% against the six major currencies in a basket of currencies to 102.3080. A weakening of the dollar would make gold contracts cheaper for investors holding other currencies.
In addition, concerns about the global economic outlook are driving safe-haven purchases of gold. The World Bank lowered its forecast for global economic growth this year from 4.1% to 2.9%, due to the impact of the Russian military invasion of Ukraine. This has exacerbated the damage caused by the COVID-19 epidemic.
The World Bank president said the global economy has been affected by the war between Russia and Ukraine, China’s use of lockdown measures to contain the spread of COVID-19, and supply chain disruptions. Including the risk of stagflation, i.e., a weak economy but high inflation as in the 1970s.
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Wednesday, June 8, 2022