Gold closes down $8.3 as investors sell ahead of Fed meeting

Gold futures closed lower on Monday (July 25) as investors sold gold contracts to mitigate risk ahead of this week’s Federal Reserve (Fed) monetary policy meeting.

  • The gold contract was down $8.3, or 0.48%, at $1,719.1 per ounce.
  • Silver was down 28.9 cents, or 1.55%, to close at $18.328 an ounce.
  • The platinum contract was up $2.1, or 0.24%, at $869.3 per ounce.
  • Palladium fell $15.80, or 0.8%, at $2003 an ounce.

Investors expect the Fed to raise interest rates by 0.75% at its July 26-27 meeting, which would increase the opportunity cost of owning gold. Gold is an asset that does not yield interest.

Investors are waiting for the U.S. Commerce Department to release its first estimate of second-quarter gross domestic product (GDP) on July 28, after previously reporting that GDP contracted 1.6% in the first quarter.

The Atlanta Fed released its latest GDPNow forecast model, which shows that the U.S. economy contracted by 1.6% in the second quarter.

The GDPNow forecast shows that the U.S. economy contracted by 1.6% in both the first and second quarters, indicating that the U.S. meets the definition of a recession as the economy has contracted for two consecutive quarters.

The Atlanta Fed will release new GDPNow forecasts on July 27, before the U.S. Commerce Department releases second-quarter GDP figures on July 28.

The Spot Market is Open

Tuesday, July 26, 2022

Metals
Updated at
USD
Bis/Ask
Ounce
Change

Low/High
Gold
11.30
1,722.10
1,723.10
+2.10
+0.12%
1,718.40
1,729.10
Silver
11.30
18.47
18.57
+0.02
+0.11%
18.35
18.67
Platinum
11.30
884.00
894.00
+4.00
+0.45%
879.00
900.00
Palladium
11.30
1,930.00
2,080.00
+8.00
+0.42%
1,912.00
2,083.00
Rhodium
05.00
14,000.00
16,000.00
0.00
0.00%
14,000.00
16,000.00

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