The Magazine for Asian Investors
Gold futures fell more than 1% on Friday (Aug. 26) after Federal Reserve Chairman Jerome Powell said in a speech at Jackson Hole that the Fed needs to keep raising interest rates until inflation can be controlled.
- Gold fell $21.6, or 1.22%, to $1,749.8 an ounce to close up 0.7% for the week.
- Silver was down 37.4 cents, or 1.96%, at $18.746 an ounce.
- The platinum contract was down $18.6, or 2.13%, at $855.3 an ounce.
- The palladium contract was down $17.90, or 0.8%, at $2,121.90 an ounce.
Gold contracts are under pressure after Powell reiterated that the Fed will continue to raise interest rates to curb inflation. And there is a tendency that the Fed will raise interest rates sharply in September.
In addition, the gold price was also pressured by the appreciation of the dollar and the rebound in U.S. Treasury bond yields following Powell’s comments.
U.S. economic data released on Friday also weighed on gold futures.
The U.S. Commerce Department said Friday that the personal consumption expenditures (PCE) price index, which excludes the food and energy category, rose 4.6% year over year in July, compared with 4.8% in June.
The U.S. Department of Commerce also announced that personal spending by U.S. consumers increased 0.1% in July, following a 1.0% increase in June, while personal income rose 0.2% in July.
In addition, the University of Michigan survey showed that the consumer sentiment index rose to 58.2 in August, up from the initial reading of 55.1, which was 51.5 in July.
The Spot Market is Closed
Saturday, August 27, 2022