Gold falls by $25.5 as the dollar strengthens and bond yields weigh on the price

Gold futures closed at their lowest level in more than 2 years on Friday (Sept. 23), pressured by the dollar’s appreciation against other currencies and the rise in short-term Treasury yields amid forecasts that the Federal Reserve (Fed) will continue to raise interest rates.

  • Gold fell $25.5, or 1.52%, to $1,655.6 per ounce. This is the lowest close since early April 2020 and a 1.7% decline for the week.
  • The silver futures fell 70.7 cents, or 3.6 percent, at $18.91 an ounce.
  • The platinum fell $47.3, or 5.22%, to close at $858.7 an ounce.
  • Palladium fell $104.50, or 4.8%, to close at $2,070.50 an ounce.

Gold contracts were pressured by the strength of the dollar and the rebound in U.S. Treasury bond yields as the Federal Reserve (Fed) continues to raise interest rates.

The yield on the two-year U.S. Treasury bond, which response to Fed monetary policy, rose above 4.2% on Friday, well above yields on the 10- and 30-year U.S. Treasury bonds.

Short-term bond yields jump higher than long-term ones. As a result, the U.S. bond market has an inverted yield curve, indicating a recession.

At its last meeting, the Fed decided to raise the short-term interest rate by 0.75% to 3.00-3.25%. It also signaled that the Fed will continue to raise rates until they reach 4.6% in 2023.

The Spot Market is Closed

Saturday, September 24, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
04.00
1,644.40
1,645.40
-26.80
-1.60%
1,640.20
1,677.20
Silver
04.00
18.83
18.93
-0.79
-4.03%
18.75
19.30
Platinum
04.00
854.00
864.00
-46.00
-5.11%
854.00
914.00
Palladium
04.00
2,003.00
2,153.00
-100.00
-4.76%
1,992.00
2,254.00
Rhodium
04.00
12,500.00
14,500.00
0.00
0.00%
12,500.00
14,500.00

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