Gold futures fell to a 3-week low on Thursday, closing in negative territory for the fourth day, as the dollar continued to rise and put pressure on the gold market.
- The gold contract was down $5.5, or 0.31%, at $1,771.20 an ounce. This is the lowest closing level since July 28.
- Silver was down 26.7 cents, or 1.35%, at $19.464 an ounce.
- The platinum contract was down $14.4, or 1.57%, at $904.90 an ounce.
- Palladium was up $12.70, or 0.6%, at $2,149.40 an ounce.
The gold market has come under pressure from the strong dollar. The dollar index against the six major currencies in a basket of currencies rose 0.85% to 107.4840.
The strong dollar has made dollar-denominated gold contracts more expensive for investors holding other currencies.
Jeff Wright, analyst at Wolfpack Capitol, said strong U.S. economic data is prompting investors to sell gold as a safe haven.
In addition, investors are also evaluating the minutes of the U.S. Federal Reserve’s (Fed) July 26-27 meeting, which indicate that the Fed is prepared to raise interest rates further to curb inflation. The Fed has signaled that it may accelerate rate hikes amid concerns that the U.S. economy is at risk of a downturn.
According to the Labor Department, initial jobless claims fell by 2,000 to 250,000 last week.
The Philadelphia Fed announced that the Mid-Atlantic Manufacturing Index rose to +6.2 in August from -12.3 in July, with the index above 0, indicating that manufacturing in the Mid-Atlantic region is expanding.
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Friday, August 19, 2022