Gold closes down $8.4 as Treasury note yields pressure markets

Gold futures closed lower on Tuesday (Aug. 16) as rising U.S. Treasury yields pressured the market. Investors are watching the minutes of the U.S. Federal Reserve (Fed) meeting on Wednesday for clues on the Fed’s interest rate direction.

  • The gold contract was down $8.4, or 0.47%, at $1,789.7 per ounce.
  • Silver was down 18.7 cents, or 0.92%, at $20.085 an ounce.
  • The platinum contract was down $2.3, or 0.25%, at $931.3 an ounce.
  • Palladium was down $9.30, or 0.4%, at $2,149 an ounce.

The yield on the 10-year U.S. Treasury bond rose again to 2.835%, a factor that is weighing on the gold market. The rise in bond yields increases the cost of owning gold, as gold is an asset that does not yield interest.

Investors traded cautiously ahead of Wednesday’s release of the minutes from the Fed’s July 26-27 meeting, as several Fed officials remained supportive of a rate hike despite signs of slowing inflation.

Chicago Fed President Charles Evans said the Consumer Price Index (CPI) showed that inflation in the U.S. slowed in July. This is the first positive data since the Fed began tightening its monetary policy.

Evans said inflation remains unacceptably high and the Fed needs to keep raising interest rates.

Mary Daly, president of the San Francisco Fed, said it is too early for the Fed to declare victory in the fight against inflation.

She also did not rule out the possibility that the Fed could raise interest rates by 0.75% at the September meeting for the third time in a row.

The Spot Market is Open

Wednesday, August 17, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.15
1,779.00
1,780.00
+3.40
+0.19%
1,774.20
1,780.80
Silver
12.15
20.23
20.33
+0.08
+0.37%
20.10
20.33
Platinum
12.10
936.00
946.00
0.00
0.00%
931.00
947.00
Palladium
12.05
2,092.00
2,242.00
+6.00
+0.29%
2,080.00
2,244.00
Rhodium
05.00
13,100.00
15,100.00
0.00
0.00%
13,100.00
15,100.00

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