The Magazine for Asian Investors
Gold closed $1.4 higher after lower-than-expected inflation numbers and the weak dollar supported markets
Gold futures closed higher on Wednesday (Aug. 10) after the U.S. released lower-than-expected inflation figures. This helped to reduce investors’ concerns about a high interest rate hike by the Federal Reserve (Fed).
- The gold contract was up $1.4, or 0.08%, at $1,813.7 per ounce. This is the highest closing level since June 29.
- Silver futures were up 26 cents, or 1.27%, at $20.742 an ounce.
- The platinum was up $13.1, or 1.4%, at $946.1 per ounce.
- The palladium futures rose $27.10, or 1.2%, at $2,245.90 an ounce.
According to the U.S. Department of Labor, the consumer price index (CPI) rose 8.5% year-on-year in July. This was below analysts’ forecast of 8.7%, after reaching a 40-year high of 9.1% in June.
The lower-than-expected CPI has prompted investors to lower their forecasts for the Fed’s interest rate outlook. CME Group’s FedWatch tool indicates that investors 61.5% think the Fed will raise rates by 0.50% to 2.75-3.00%. Meeting on September 20-21 and weighted only 38.5% that the Fed will raise rates by 0.75%.
Previously, 68.5% expected the Fed to raise rates by 0.75% to 3.00-3.25% at its September 20-21 meeting, and only 31.5% expected the Fed to raise rates by 0.50%.
In addition, gold contracts were also supported by the weakening of the dollar and the decline in U.S. Treasuries.
The dollar index against the six major currencies in a basket of currencies fell 1.11% to 105.1960, and the yield on the 10-year U.S. Treasury bond fell to 2.723%.
A weaker dollar will make gold contracts cheaper for holders of other currencies.
The Spot Market is Open
Thursday, August 11, 2022
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 11.40 | 1,784.80 1,785.80 | -7.60 -0.42% | 1,784.10 1,794.00 |
| Silver 11.40 | 20.45 20.55 | -0.14 -0.68% | 20.43 20.70 |
| Platinum 11.40 | 943.00 953.00 | -1.00 -0.11% | 940.00 956.00 |
| Palladium 11.40 | 2,160.00 2,310.00 | -16.00 -0.74% | 2,158.00 2,334.00 |
| Rhodium 05.00 | 13,600.00 15,600.00 | 0.00 0.00% | 13,600.00 15,600.00 |
