Gold closes in the red after Powell insists on continuing to curb inflation

Gold futures closed lower on Thursday (Sept. 8) after Federal Reserve Chairman Jerome Powell confirmed that the U.S. central bank would continue to seriously curb inflation and signaled that interest rate cuts would still not come soon.

  • Gold was down $7.6, or 0.44%, at $1,720.2 an ounce.
  • Silver futures were up 18.2 cents, or 1%, at $18.442 an ounce.
  • The platinum contract was up $19.2, or 2.27%, at $866.4 an ounce.
  • The palladium futures rose $124.20, or 6.1%, at $2,147 an ounce.

Powell gave a speech to the Cato Institute late last night in which he stated that the Fed is strongly committed to controlling inflation. The Fed hopes that achieving this goal will not have exorbitant social costs. At the same time, it also signaled that an end to rate hikes or a rate cut is not likely anytime soon.

“History warns us to be wary of easing monetary policy too quickly. I assure you that I and the Fed Committee have a strong commitment to controlling inflation. We will continue until the mission is complete. And we think we can avoid the high social costs that former Fed chair Paul Volger used to do,”

Powell said.

Data from CME Group’s FedWatch tool shows that investors are now 88% confident that the Fed will raise rates by 0.75% to 3.00-3.25% at its September 20-21 meeting, and only 12% confident that the Fed will raise rates by 0.50%.

The Spot Market is Open

Friday, September 9, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.00
1,721.50
1,722.50
+12.60
+0.74%
1,708.90
1,723.00
Silver
12.00
18.84
18.94
+0.32
+1.73%
18.51
18.95
Platinum
12.00
885.00
895.00
+5.00
+0.57%
880.00
898.00
Palldium
12.00
2,043.00
2,193.00
-27.00
-1.30%
2,034.00
2,23000
Rhodium
05.00
14,200.00
16,200.00
0.00
0.00%
14,200.00
16,200.00

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