Gold closes at $20.8 under selling pressure after dollar rise – US PCE remains at elevated level

Gold contracts closed lower on Friday (Oct. 28) as investors sold gold contracts after the dollar and U.S. Treasury bond yields rose.

  • Gold prices fell $20.8, or 1.25%, to close at $1,644.8 per ounce, down 0.7% for the week.
  • The silver contract was down 34.7 cents, or 1.78%, at $19.147 an ounce.
  • The platinum contract was down $18.3, or 1.89%, at $949.1 an ounce.
  • Palladium fell $41, or 2.1%, at $1,897.20 an ounce.

Gold contracts were pressured by the strength of the dollar. The dollar index against the six major currencies in a basket of currencies rose 0.15% to 110.7520.

A stronger dollar will make gold contracts more expensive for holders of other currencies. The rebound in U.S. treasury bond yields will increase the cost of owning gold. This is because gold is an asset that does not yield interest.

The dollar is gaining as investors continue to expect the Federal Reserve (Fed) to raise interest rates by 0.75% next week. The U.S. Labor Department said Friday that its overall PCE index, which includes food and energy, rose 6.2% year over year in September after likewise rising 6.2% in August.

Analysts had forecast an increase of 6.3%.

Compared with the previous month, the overall PCE index rose by 0.3% in September, after also increasing by 0.3% in August.

The core PCE index, which excludes food and energy and is the Fed’s preferred measure of inflation, rose 5.1% year over year in September, up from 4.9% in August.

On a monthly basis, the core PCE index rose 0.5% in September, following a 0.6% gain in August.

The PCE index is a measure of inflation that can detect changes in consumer behavior and covers a broader range of prices for goods and services than the consumer price index (CPI).

According to a University of Michigan survey, the consumer sentiment index rose to 59.9 in October, above the initial reading of 59.8, after reaching 58.6 in September.

Current economic sentiment rose to 65.6, but the six-month economic sentiment index fell to 56.2.

The Spot Market is Closed

Saturday, October 29, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
04.00
1,845.70
1,846.70
-18.00
-1.08%
1,637.70
1,668.10
silver
04.00
19.24
19.34
-0.35
-1.79%
18.97
19.74
Platinum
04.00
942.00
952.00
-16.00
-1.67%
938.00
975.00
Palladium
04.00
1,831.00
1,981.00
-39.00
-2.09%
1,810.00
2,044.00
Rhodium
04.00
13,000.00
15,000.00
0.00
0.00%
13,000.00
15,000.00

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