The Magazine for Asian Investors
Gold futures closed higher on Friday (July 29), supported by the weakening U.S. dollar, which makes gold more attractive by making gold contracts cheaper for holders of other currencies.
- Gold futures rose $12.6, or 0.71%, to $1,781.8 per ounce, up 3.2% for the week but down 1.4% in July.
- Silver futures were up 32.9 cents, or 1.66%, at $20.197 an ounce.
- The platinum contract was up $13, or 1.48%, at $889.8 per ounce.
- The palladium contract was up $49.50, or 2.4%, at $2,129.70 an ounce.
A weaker dollar drove gold contracts. The dollar index against the six major currencies in a basket of currencies fell 0.42% to 105.9030.
The release of U.S. economic data on Friday also supported gold futures. Investors bought gold as a safe haven, worried about inflation and a weak economy after the U.S. released data that pointed to a rise in inflation in June.
The U.S. Commerce Department reported Friday that the general price index for personal consumption expenditures (PCE), which includes the food and energy category, rose 6.8% in June from a year earlier. This is the most significant increase in more than 40 years going back to January 1982. On a monthly basis, the PCE index rose 1%, the largest increase since February 1981.
The core PCE index, which excludes food and energy, is a measure of inflation focused on by the Federal Reserve (Fed). It rose 4.8 percent year over year and 0.6 percent month over month.
The Institute for Supply Management (ISM) announced that the Chicago Business Conditions Index fell to 52.1 in July from 56 in June, the lowest level since August 2020.
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Saturday, July 30, 2022