Gold futures closed lower on Wednesday (Sept. 14) as investors remained concerned about an accelerated Federal Reserve rate hike after the U.S. Consumer Price Index (CPI) came in higher than expected.
- The gold contract was down $8.3, or 0.48%, at $1,709.1 per ounce.
- Silver futures were up 7.8 cents, or 0.4%, at $19.569 an ounce.
- The platinum contract was up $21.7, or 2.46%, at $905.4 an ounce.
- The palladium futures rose $61.60, or 2.9%, at $2,172.70 an ounce.
Gold futures fell for the second day in a row after the U.S. consumer price index rose 8.3% year-over-year in August. This led the market to expect that the Fed would accelerate rate hikes to contain inflation.
Although gold is considered a hedge against inflation and a haven in the face of political and economic uncertainty, the Fed’s tendency to raise interest rates has overshadowed the positive factor. Rising interest rate increases the opportunity cost of owning gold. This is because gold is an asset that does not yield interest.
Investors had begun to expect a 1.00% rate hike from the Fed at its September meeting after the U.S. consumer price index came in higher than expected. CME Group’s latest FedWatch tool shows that investors are 36% expecting a 1.00% rate hike to 3.25-3.50% at the September meeting and 64% expecting a 0.75% rate hike by the Fed.
The Spot Market is Open
Thursday, September 15, 2022
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 12.30 | 1,688.50 1,689.50 | -8.50 -0.50% | 1,685.40 1,698.80 |
| Silver 12.30 | 19.49 19.59 | -0.11 -0.56% | 19.45 19.75 |
| Platinum 12.30 | 901.00 911.00 | -6.00 -0.66% | 900.00 920.00 |
| Palladium 11.50 | 2,082.00 2,232.00 | -14.00 -0.67% | 2,082.00 2,252.00 |
| Rhodium 05.00 | 12,950.00 14,950.00 | 0.00 0.00% | 12,950.00 14,850.00 |