The Magazine for Asian Investors
Gold futures closed lower on Tuesday (June 21) as investors sold gold as a safe haven after the U.S. stock market surged. Meanwhile, investors are keeping an eye on the Federal Reserve, which will present its semi-annual monetary policy and economic outlook to Congress this week.
- The gold contract was down $1.8, or 0.1%, at $1,838.8 per ounce.
- Silver futures were up 18.1 cents, or 0.84%, at $21.768 an ounce.
- The platinum contract was up $9.3, or 1%, at $939.5 per ounce.
- The palladium futures rose $64, or 3.6%, at $1,862.70 an ounce.
After the Dow Jones Industrial Average rose more than 600 points last night, investors sold safe assets.
Gold futures also came under pressure as 10-year U.S. Treasury yields rose to 3.302%.
Investors are turning their attention to Fed Chairman Powell, who will deliver his semiannual report on U.S. monetary policy and the economic outlook to the Senate Banking Committee today (June 22) and then to the House Financial Services Committee.
Prior to Powell’s statement, the Fed submitted its semiannual monetary policy report to Congress last week, which stated that the Federal Open Market Committee (FOMC) is unconditionally committed to the price stabilization necessary to maintain a strong labor market.
The use of the word “unconditional” in the report suggests that the Fed is willing to take the risks that may arise to prevent runaway inflation from putting the economy in an even worse position that will hurt the economy in the long run.
The Spot Market is Open
Wednesday, June 22, 2022