Gold fell $23.2 as Fed expected to raise interest rates sharply after unexpectedly high inflation numbers

Gold futures closed lower on Tuesday (Sept. 13), with markets weighed down by the dollar’s appreciation and fears that the Federal Reserve will accelerate its rate hikes.

  • The gold futures fell $23.2, or 1.33%, at $1,717.4 an ounce.
  • Silver was down 36.9 cents, or 1.86%, at $19.491 an ounce.
  • The platinum contract was down $20.5, or 2.27%, at $883.7 per ounce.
  • Palladium fell $163.50, or 7.2%, at $2,111.10 an ounce.

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 8.3% in August.

Core CPI (excluding food and energy prices) rose by 6.3% year-on-year in August.

Investors expect the Fed to raise interest rates by up to 1.00% at its meeting on September 20-21, following higher-than-expected CPI in the US.

CME Group’s latest FedWatch tool shows that investors are 32% confident that the Fed will raise rates by 1.00% to 3.25-3.50% at this month’s meeting and 82% confident that the Fed will raise rates by 0.75%.

The appreciation of the dollar has also made dollar gold contracts more expensive for investors holding other currencies.

The dollar index against the six major currencies in a basket of currencies rose 1.37% to 109.8150.

The Spot Market is Open

Wednesday, September 14, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.10
1,700.00
1,701.00
-1.90
-0.11%
1,696.20
1,704.50
Silver
11.10
19.27
19.37
-0.04
-0.21%
19.22
19.46
Platinum
11.10
881.00
891.00
+1.00
+0.11%
876.00
895.00
Palladium
11.10
2,018.00
2,168.00
-12.00
-0.59%
2,003.00
2,178.00
Rhodium
05.00
13,250.00
15,250.00
0.00
0.00%
13,250.00
15,250.00

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