Gold fell by $31.8 as the strong dollar and U.S. Treasury yields weighed on the market

Gold futures closed below $1,700 on Thursday (Sept. 15) as a strong dollar and rising U.S. bond yields pressured the market.

  • The gold futures fell $31.8, or 1.86%, at $1,677.3 an ounce.
  • Silver was down 30 cents, or 1.53%, at $19.269 an ounce.
  • The platinum contract was down $1.7, or 0.19%, at $903.7 per ounce.
  • Palladium fell $26.60, or 1.2%, at $2,146.10 an ounce.

The dollar index rose against the six major currencies in a basket of currencies to 109.7400, making dollar-denominated gold contracts more expensive for investors holding other currencies.

The yield on 2-year U.S. treasury bonds, which responded to the Federal Reserve’s monetary policy, rose to over 3.8% and was well above the yields on 10- and 30-year U.S. treasury notes. Short-term bond yields rose again more strongly than long-term yields. As a result, the U.S. bond market has an inverted yield curve, indicating a recession.

CME Group’s latest FedWatch tool shows that 80% of investors expect the Fed to raise rates by 0.75% to 3.00-3.25% at its September 20-21 meeting, and 20% believe the Fed will raise rates by 1.00%.

The Spot Market is Open

Friday, September 16, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.10
1,663.50
1,664.50
-1.80
-0.11%
1,661.40
1,669.00
Silver
12.10
19.15
19.25
-0.02
-0.10%
18.91
19.30
Platinum
12.10
902.00
912.00
-3.00
-0.33%
899.00
915.00
Palladium
11.00
2,068.00
2,218.00
-3.00
-0.14%
2,062.00
2,226.00
Rhodium
05.00
12,950.00
14,950.00
0.00
0.00%
12,950.00
14,950.00

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