Gold closed $6.2 higher as inflation expectations declined

Gold futures closed higher on Friday (Sept. 16) after a consumer confidence report was released in the U.S. that showed inflation expectations also fell. The decline in U.S. equity markets also prompted investors to buy gold contracts as a safe haven. However, gold futures continued their slide this week, falling almost 3% after closing Thursday at the lowest level in more than 2 years.

  • Gold futures rose $6.2, or 0.37%, to $1,683.5 per ounce, but were down 2.6% for the week.
  • Silver was up 11.2 cents, or 0.58%, at $19.381 per ounce.
  • The platinum contract was down $2.7, or 0.3%, at $901 an ounce.
  • Palladium fell $33.40, or 1.6%, at $2,112.70 an ounce.

The gold contract was supported by a University of Michigan survey that showed the consumer sentiment index rose to 59.5 in September from 58.6 in August but below the initial reading of 60.0.

At the same time, consumers expect inflation to be 4.6% next year, down from 4.8% last month and the lowest level since September. 2021

Over the next 5 years, consumers expect inflation to be 2.8%, which is lower than the 2.9% surveyed last month and would be the lowest level since July 2021.

According to market analysts, gold contracts were also boosted by speculative orders after prices fell to levels that were too low.

Investors will await the outcome of the Federal Reserve’s (Fed) monetary policy meeting on September 20-21, when markets expect the Fed to raise interest rates by 0.75% to 1% in an effort to curb inflation.

The Spot Market is Closed

Saturday, September 17, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
04.00
1,675.90
1,676.90
+10.60
+0.64%
1,653.40
1,682.00
Silver
04.00
19.59
19.69
+0.43
+2.24%
18.76
19.72
Platinum
04.00
906.00
916.00
+1.00
+0.11%
882.00
922.00
Palladium
04.00
2,067.00
2,217.00
-4.00
-0.19%
2,010.00
2,228.00
Rhodium
04.00
12,950.00
14,950.00
0.00
0.00%
12,950.00
14,950.00

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