Gold futures closed lower on Monday (Aug. 22) as markets were pressured by the dollar’s appreciation and fears that the U.S. Federal Reserve (Fed) will accelerate rate hikes to curb inflation.
- Gold fell $14.5, or 0.82%, at $1,748.4 an ounce. This is the lowest closing level since July 27.
- Silver was down 19.1 cents, or 1%, at $18.878 an ounce.
- The platinum contract was down $20, or 2.25%, at $868 an ounce.
- The palladium contract fell $149.60, or 7%, at $1,981.80 an ounce.
Gold contracts closed six straight days in the red, the longest record since July 6 of this year.
The dollar index rose 0.82% against the six major currencies in a basket of currencies to 109.0460, putting pressure on gold markets. This makes gold contracts quoted in dollars more expensive for investors holding other currencies.
Gold markets are also under pressure after 10-year U.S. Treasury bond yields rose above 3%.
In addition, the trading environment on the gold market was also affected by fears that the Fed could raise interest rates by 0.75% at its September meeting. This would be the third rate hike of 0.75% in a row, having already been raised by 0.75% in both June and July.
Investors are looking for a clearer signal on the U.S. economy and interest rate trends, including the reduction in the Fed’s balance sheet (QT) amid inflation concerns, from the Fed’s annual meeting in Jackson Hole, Wyoming, Aug. 25-27.
The Spot Market is Open
Tuesday, August 23, 2022
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 11.50 | 1,737.00 1,738.00 | +0.10 +0.01% | 1,734.20 1,741.50 |
| Silver 11.50 | 18.92 19.02 | -0.05 -0.34% | 18.91 19.17 |
| Platinum 11.50 | 875.00 885.00 | -3.00 -0.34% | 872.00 891.00 |
| Palladium 11.20 | 1,946.00 2,096.00 | +24.00 +1.25% | 1,922.00 2,104.00 |
| Rhodium 05.00 | 12,500.00 14,500.00 | 0.00 0.00% | 12,500.00 14,500.00 |