Business News Asia
Gold futures closed lower on Wednesday as investors reacted negatively to comments by Federal Reserve Chairman Jerome Powell, who said the Fed’s task of fighting inflation is not over. He said there is still a long way to go, which investors see as a signal that the Fed will continue to raise interest rates.
- Gold futures were down $3.8, or 0.22%, at $1,759.9 per ounce.
- Silver futures rose 34.5 cents, or 1.61%, to close at $21.781 per ounce.
- Platinum futures rose $30.7, or 3.04%, to close at $1,039.3 per ounce.
- Palladium futures rose $32.10, or 1.8%, to settle at $1,866 per ounce.
Powell delivered a keynote address on monetary and fiscal policy at the Brookings Institution yesterday and said the Fed is likely to slow rate hikes as early as December.
Powell cautioned, however, that the Fed’s task of fighting inflation is still a long way off, he said. The Fed has yet to make clear progress in curbing inflation.
Investors see Powell’s comments as a signal that the Fed will continue to raise interest rates, putting pressure on gold markets.
Meanwhile, the U.S. Department of Commerce has released its second estimate of gross domestic product (GDP) for the third quarter. According to this estimate, the economy grew by 2.9% in this quarter, exceeding the first estimate of 2.6% and analysts’ expectations of 2.7%.
Automatic Data Processing Inc (ADP) announced that private sector employment increased by 127,000 in November, the lowest level since January and below expectations at 190,000 jobs, following an increase of 239,000 jobs in October.
Investors are waiting for the publication of the U.S. non-farm payrolls figures on Friday.
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Thursday, December 1, 2022