Gold closes $40 higher after U.S. CPI shows signs of slowing

Gold futures rose more than 2% on Thursday (Nov. 10) after the U.S. Consumer Price Index (CPI) came in lower than expected. This could be a factor encouraging the Federal Reserve (Fed) to slow down rate hikes. In addition, the depreciation of the dollar is also a positive factor for the gold market.

• Gold futures rose $40, or 2.33%, to close at $1,753.7 per ounce. This is the highest closing level since August 25, 2022.
• Silver futures were up 37.5 cents, or 1.76%, at $21.702 an ounce.
• The platinum was up $57.7, or 5.79%, at $1,055 an ounce.
• Palladium was up $95, or 5.1%, at $1,954.20 an ounce.

The U.S. Labor Department reported that the CPI, which includes food and energy, rose 7.7% year over year in October, down from 8.2% in September.

The core CPI (excluding food and energy) rose 6.3% year-on-year in October, down from 6.6% in September.

This information reflects that U.S. inflation seems to have peaked and investors expect the Fed to slow its rate hikes at its December monetary policy meeting. CME Group’s FedWatch tool shows that 80.6% of investors expect the Fed to raise rates by only 0.50% at its December 13-14 meeting, and 19.4% expect the Fed to raise rates by 0.75%. %

The gold market was also driven by the depreciation of the dollar. The dollar index fell against the six major currencies of a basket of currencies by 2.12% to 108.2040.

The weakening of the dollar has made gold contracts priced in dollars less expensive for investors who are proficient in other currencies.

The Spot Market is Open

Friday, November 11, 2022

Metals Updated at	USD Bid/Ask	Ounce Change	Low/High
Gold 11.30	1,750.30 1,751.30	-5.40 -0.31%	1,747.00 1,755.70
Silver 11.30	21.58 21.67	-0.09 -0.42%	21.48 21.77
Platinum 11.30	1,031.00 1,041.00	-2.00 -0.19%	1,026.00 1,043.00
Palladium 11.20	1,868.00 2,018.00	-32.00 -1.68%	1,868.00 2,056.00
Rhodium 06.00	12,150.00 14,150.00	0.00 0.00%	12,150.00 14,150.00

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