Gold closes $12.8 higher as dollar falls and weak U.S. economic data

Gold futures closed higher Tuesday (Aug. 23) as the dollar’s depreciation and sluggish U.S. economic data boosted safe-haven gold buying.

  • The gold futures were up $12.8, or 0.73%, at $1,761.2 an ounce.
  • Silver futures were up 14.8 cents, or 0.78%, at $19.026 per ounce.
  • The platinum was up $8.4, or 0.97%, at $876.4 per ounce.
  • The palladium contract was down $8.90, or 0.5%, at $1,972.90 an ounce.

The dollar index fell 0.39% against the six major currencies in a basket of currencies to 108.6240, which boosted the gold market. This makes gold contracts denominated in dollars less expensive for investors holding other currencies.

In addition, sluggish U.S. economic data is also driving safe-haven gold buying. The S&P Global PMI for manufacturing and services fell to 45.0 in August, the lowest level in 27 months, from 47.7 in July.

The PMI was below 50 for the second month in a row, suggesting that U.S. businesses remain in a contraction phase due to slowing new orders and employment.

The U.S. Commerce Department reported that new home sales fell 12.6% in July to 511,000 units, the lowest level since January 2016 (585,000 units in June). It was hurt by rising home prices and rising mortgage rates

Investors continue to focus on the Federal Reserve’s (Fed) annual meeting in Jackson Hole, Wyoming, Aug. 25-27.

The Fed is expected to give clearer signals regarding the U.S. economy’s interest rate trajectory, including the reduction of the Fed’s balance sheet (QT), amid inflation concerns.

The Spot Market is Open

Wednesday, August 24, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.20
1,745.90
1,746.90
-2.40
-0.14%
1,744.00
1,749.70
Silver
11.20
19.03
19.14
-0.07
-0.37%
18.99
19.23
Platinum
11.20
877.00
887.00
-4.00
-0.45%
876.00
892.00
Palladium
11.20
1,910.00
2,060.00
+5.00
+0.28%
1,900.00
2,067.00
Rhodium
05.00
12,500.00
14,500.00
0.00
0.00%
12,500.00
14,500.00

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