The gold contract closed higher for the second day Wednesday (June 8) on concerns about economic recession in the United States. While investors are keeping an eye on U.S. inflation on Friday.
The gold contract rose $4.4, or 0.24%, to close at $1,856.5 per ounce.
The silver contract fell 8.4 cents, or 0.38%, to close at $22.094 per ounce.
The platinum contract fell $1.3, or 0.13%, to close at $1,011.6 per ounce.
The palladium contract fell $27.60, or 1.4%, to close at $1,937.80 per ounce.
Investors are buying gold as a safe investment after signals suggest the U.S. economy is heading into a recession. The Federal Reserve (Fed) Atlanta branch revealed that the GDPNOW TRACKER model indicates that the U.S. economy is at risk of contracting for two consecutive quarters, which would result in a recession.
The GDPnow tracker indicates that U.S. gross domestic product (GDP) is likely to grow by only 0.9% in the second quarter after contracting by 1.5% in the first quarter, meaning that the United States is at high risk of seeing the economy contract for two consecutive quarters.
In addition, the decline in the U.S. stock market is also a factor leading to the purchase of safe assets. The Dow Jones index fell by more than 200 points after the yield on 10-year U.S. Treasury note rose above the psychological level of 3%.
Investors are watching for the release of the consumer price index (CPI) in the U.S. next Friday.
In addition, investors are also keeping an eye on the Federal Reserve (Fed) meeting on June 14-15, when a 0.50% rate hike is expected.
The Spot Market is Open
Thursday, June 9, 2022