Gold closes more than 2% higher – U.S. midterm elections expected to have direct impact on Fed rate decisions

Gold futures closed higher on Tuesday (Nov. 8) on weakness in the dollar and predictions that the Federal Reserve (Fed) will slow rate hikes.

  • Gold futures rose $35.5, or 2.11%, at $1,716 an ounce.
  • Silver futures were up 58.3 cents, or 2.79%, at $21.502 an ounce.
  • The platinum contract was up $25.1, or 2.54%, at $1,014.5 an ounce.
  • The palladium futures were up $35.10, or 1.9%, at $1,932.60 an ounce.

Gold contracts supported by dollar depreciation. The dollar index against the six major currencies in a basket of currencies fell 0.44% to 109.6390.

A weakening dollar makes gold contracts priced in dollars cheaper for investors holding other currencies.

In addition, gold contracts were also boosted by forecasts that the Fed will shift rate hikes in the event of a Republican victory in the midterm elections.

Should Republicans hold the majority in the U.S. House of Representatives or even the Senate, President Joe Biden will have a hard time pushing for fiscal stimulus said Damian Boei, principal analyst at Barrenjoey.

Goldman Sachs Chief Analyst Jan Hatzius said the Fed will continue to raise interest rates should Democrats win the election because President Joe Biden will push for government spending measures that will allow the Fed to tighten monetary policy.

Investors are awaiting the release of the U.S. Consumer Price Index (CPI) on Thursday. It is an information that the Fed uses to make decisions about monetary policy.

The Spot Market is Open

Wednesday, November 9, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
12.25
1,707.60
1,708.60
-5.00
-0.29%
1,706.60
1,714.20
Silver
12.25
21.29
21.39
-0.04
-0.16%
21.27
21.54
Platinum
12.25
1,004.00
1,014.00
+5.00
+0.50%
995.00
1,015.00
Palladium
12.15
1,847.00
1,997.00
-8.00
-0.43%
1,841.00
2,004.00
Rhodium
06.00
12,150.00
14,150.00
0.00
0.00%
12,150.00
14,150.00

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