Business News Asia
Gold futures prices fell after the Fed plans to continue fighting inflation with rising interest rates. In addition, gold prices are under pressure from a stronger dollar, which makes gold contracts more expensive for investors holding other currencies.
- The gold contract was down $6.90, or 0.38%, to $1,831.50 per ounce.
- Silver was down 37.9 cents, or 1.77%, at $21.042 an ounce.
- The platinum contract was down $22.5, or 2.43%, at $904.4 per ounce.
- Palladium fell $13.80, or 0.8%, to close at $1,824.10 an ounce.
Gold contracts are under pressure from the strong dollar. The dollar index rose 0.22% to 104.4310 against the six major currencies in a basket of currencies.
The dollar rose against the euro after S&P Global’s Purchasing Managers’ Index (PMI) for the German and French manufacturing and primary services sectors fell. This reflects inflationary pressures and economic volatility.
The PMI for the manufacturing and primary services sectors in Germany fell to 51.3 in June from 53.7 in May.
The French PMI for manufacturing and primary services was 52.8 in June, down from 57.0 in May.
Gold prices were also under pressure after Federal Reserve Chairman Jerome Powell confirmed to Congress yesterday that the Fed wants to curb inflation. And by its own statement, the Fed is moving quickly toward that goal. The Fed says it has both the tools and the intent to restore price stability for American households and businesses.
In addition, the good U.S. labor market data prompted investors to sell gold as a safe haven. The number of initial jobless claims fell last week by 2,000 to 229,000, the Labor Department reported.
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Friday, June 24, 2022