Gold closed in the plus for the third day in a row

Gold posted gains for a third straight day Thursday (Aug. 25) as a weaker dollar and a drop in U.S. Treasury bond yields boosted the market. Investors are turning their attention to Federal Reserve Chairman Jerome Powell, who speaks at the Fed’s annual meeting in Jackson Hole today.

  • The gold futures were up $9.9, or 0.56%, at $1,771.4 per ounce.
  • Silver futures were up 21.3 cents, or 1.13%, at $19.12 an ounce.
  • The platinum was up $7.1, or 0.82%, at $873.9 per ounce.
  • The palladium futures rose $114.20, or 5.6%, at $2,139.80 an ounce.

The dollar index against the six major currencies in a basket of currencies fell 0.19% to 108.4670, while the yield on the 10-year U.S. Treasury bond fell to 3.083%.

A weaker dollar will increase the attractiveness of gold as gold contracts become cheaper for holders of other currencies. The decline in U.S. treasury bond yields will reduce the opportunity cost of owning gold, as gold is an asset that does not earn interest.

Investors are waiting for Fed Chairman Jerome Powell to speak at a conference in Jackson Hole, Wyoming, on Aug. 26, expecting clear signs on the U.S. economy, interest rate trends, and the reduction of the Fed’s balance sheet (QT).

In an earlier statement to Congress, Powell said the Fed is committed to “unconditional” price stabilization. This suggests that the Fed is willing to take the risks that may arise in order to protect the economy from runaway inflation, which can cause long-term damage.

The Spot Market is Open

Friday, August 26, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,755.70
1,756.70
-3.20
-0.18%
1,752.50
1,760.20
Silver
12.00
19.25
19.35
-0.01
-0.05%
19.14
19.38
Platinum
12.00
883.00
893.00
+1.00
+0.11%
878.00
895.00
Palladium
12.00
2,069.00
2,219.00
-6.00
-0.29%
2,069.00
2,240.00
Rhodium
05.00
12,500.00
14,500.00
0.00
0.00%
12,500.00
14,500.00

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