Gold closes down $3.7 as strong dollar counteracts buying

Gold futures closed lower on Wednesday (June 29) as the strong dollar continued to weigh on the market. The dollar index rose above 105 after Federal Reserve Chairman Jerome Powell announced more rate hikes to curb inflation.

  • The gold contract was down $3.7, or 0.2%, at $1,817.5 per ounce.
  • Silver was down 13.4 cents, or 0.64%, at $20.738 an ounce.
  • The platinum contract was up $4.3, or 0.47%, at $909.9 per ounce.
  • The palladium futures rose $84.70, or 4.6%, at $1,946.60 an ounce.

Gold contracts are under pressure from the strong dollar. The dollar index rose 0.58% against the six major currencies in a basket of currencies to 105.1060. The appreciation of the dollar has made gold contracts more expensive for investors holding other currencies.

The dollar index rose after Powell said yesterday at the annual meeting of the European Central Bank (ECB) in Portugal that the Fed will use all its tools to lower inflation. In addition, he said, the Fed will prevent low inflation from becoming high inflation.

In the short term, the Fed has raised interest rates several times to contain a sharp rise in inflation.

However, investors are buying gold as a safe haven after the U.S. Commerce Department released the latest estimate of GDP for the first quarter of 2022.

GDP fell 1.6% from the previously reported 1.4% and 1.5% in the first and second forecasts, respectively, while analysts were forecasting a 1.5% decline in U.S. GDP for the first quarter.

The Spot Market is Open

Thursday, June 30, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.40
1,815.00
1,816.00
-2.90
-0.16%
1,814.80
1,822.50
Silver
11.40
20.68
20.79
-0.05
-0.22%
20.67
20.90
Platinum
11.40
918.00
928.00
+3.00
+0.33%
915.00
932.00
Palladium
11.00
1,915.00
2,065.00
+22.00
+1.16%
1,886.00
2,071.00
Rhodium
05.00
13,100.00
15,100.00
0.00
0.00%
13,100.00
15,100.00

Leave a Reply

Change Language
%d bloggers like this: