Gold closes in the red as the dollar weighs on the market – Investors await the outcome of the Fed meeting

Gold futures closed in the red on Tuesday (September 20) as the strength of the dollar pressured the markets. Investors are paying attention to the results of today’s Federal Reserve (Fed) meeting, as the Fed is expected to raise interest rates by another 0.75% at this meeting.

  • The gold contract was down $7.1, or 0.42%, at $1,671.1 per ounce.
  • Silver was down 17.5 cents, or 0.9%, at $19.183 an ounce.
  • The platinum contract was up $4.3, or 0.47%, at $922.8 per ounce.
  • The palladium contract was down $50.20, or 2.3%, at $2,170.50 an ounce.

The gold market has come under pressure from the strong dollar. The dollar index against the six major currencies in a basket of currencies rose 0.44% to 110.2150.

A rising dollar makes gold contracts quoted in dollars more expensive for investors holding other currencies.

Investors are watching the outcome of the Fed meeting, which will be announced later today, while the CME Group’s FedWatch tool indicates that 82% of investors believe a 0.75% rate hike to 3.00-3.25% is possible this meeting and 18% believe the Fed will raise rates by 1.00%.

If the Fed raises rates by 0.75% in September, it will be the third time it has raised rates by 0.75%, having already raised 0.75% in June and July. And if the Fed raises rates by 1.00%, it would be the largest rate hike in 40 years.

The Spot Market is Open

Wednesday, September 21, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.20
1,662.70
1,663.70
-2.20
-0.13%
1,662.10
1,668.20
Silver
11.20
19.27
19.38
+0.03
+0.13%
19.21
19.44
Platinum
11.20
925.00
935.00
+5.00
+0.54%
918.00
938.00
Palladium
10.30
2,086.00
2,236.00
-14.00
-0.67%
2,075.00
2,250.00
Rhodium
05.00
12,950.00
14,950.00
0.00
0.00%
12,950.00
14,950.00

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