Gold closes lower on concerns that strong economic data will support Fed rate hike

Gold futures closed lower on Tuesday (Aug. 30), with markets pressured by concerns that strong U.S. economic data could prompt the Federal Reserve (Fed) to raise interest rates more quickly.

  • The gold futures fell $13.4, or 0.77%, at $1,736.3 an ounce.
  • Silver was down 38.3 cents, or 2.05%, at $18.287 an ounce.
  • The platinum contract was down $22.2, or 2.6%, at $832.1 an ounce.
  • Palladium fell $42.50, or 2%, at $2,087.80 an ounce.

The U.S. Bureau of Labor Statistics released its Job Openings and Labor Turnover Rate (JOLTS) survey, showing that the number of job openings, a measure of demand in the labor market, increased by 200,000 in July to 11.24 million. The job openings rate rose to 6.9%.

The JOLTS numbers are considered a measure of the tightness in the labor market, which affects the Federal Reserve’s monetary policy and interest rates.

According to a survey by the Conference Board economic research firm, the consumer confidence index rose to 103.2 in August from 95.3 in July.

The U.S. Consumer Confidence Index is a survey of consumers’ outlook and sentiment regarding current and next six-month economic conditions, personal finances, and employment.

Investors are concerned that strong U.S. economic data may prompt the Fed to raise rates. CME Group’s most recent FedWatch data shows that investors are now 76.5% bullish on a 0.75% Fed rate hike to 3.00-3.25% at the September 20-21 meeting, and only 23.5% back a 0.50% rate hike.

The Spot Market is Open

Wednesday, August 31, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.15
1,724.70
1,725.70
+0.80
+0.05%
1,720.40
1,725.80
Silver
11.15
18.47
18.57
+0.06
+0.33%
18.36
18.58
Platinum
11.15
853.00
863.00
+6.00
+0.71%
846.00
863.00
Palladium
11.15
2,039.00
2,189.00
+35.00
+1.75%
1,993.00
2,189.00
Rhodium
05.00
13,400.00
15,400.00
0.00
0.00%
13,400.00
15,400.00

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