Gold falls $34.1 on strong dollar and Fed rate hike concerns

Gold futures fell for the second day in a row on Monday (Oct. 10) as investors remained concerned that higher-than-expected U.S. non-farm payrolls data could prompt the Federal Reserve to raise interest rates further. In addition, the appreciation of the dollar is also a factor that puts pressure on the gold market.

  • The gold contract was down $34.1, or 1.99%, at $1,675.2 an ounce.
  • Silver was down 64 cents, or 3.16%, at $19.615 an ounce.
  • The platinum contract was down $22.1, or 2.41%, at $895.8 an ounce.
  • Palladium fell $23.40, or 1.1%, at $2,167.90 an ounce.

The dollar index rose 0.31% against the six major currencies in a basket of currencies to 113.1450.

The appreciation of the dollar caused the gold contract priced in dollars to become more expensive for investors with other currencies.

Worries that the Fed will raise interest rates further also put pressure on gold markets after non-farm payrolls in the U.S. rose by 263,000 in September. The unemployment rate fell to 3.5% in September from 3.7% in August.

Investors expect the Fed to raise interest rates by a further 0.75% at its November meeting on the back of better-than-expected labor market figures. This will be the fourth consecutive 0.75% rate hike, having already raised rates by 0.75% in June, July and September.

The Spot Market is Open

Tuesday, October 11, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.00
1,664.60
1,665.60
-4.50
-0.27%
1,661.20
1,674.80
Silver
11.00
19.44
19.55
-0.14
-0.71%
19.42
19.81
Platinum
11.00
894.00
904.00
-3.00
-0.33%
893.00
912.00
Palladium
10.50
2,109.00
2,259.00
+2.00
+0.09%
2,096.00
2,266.00
Rhodium
05.00
12,600.00
14,600.00
0.00
0.00%
12,600.00
14,600.00

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