Business News Asia
Gold closes up $33.2 on weak dollar and lower-than-expected U.S. inflation numbers
Gold futures closed higher on Tuesday (Dec. 13) after lower-than-expected inflation in the U.S., leading investors to expect the Federal Reserve (Fed) to raise interest rates at a slower pace. The weakening of the dollar index is another factor supporting the gold market.
- Gold futures rose $33.2, or 1.85%, to close at $1,825.5 per ounce.
- Silver futures rose 58.7 cents, or 2.51%, to close at $23.99 per ounce.
- Platinum futures rose $30.9, or 3.07%, to close at $1,038.9 per ounce.
- Palladium futures rose $52.60, or 2.8%, to settle at $1,936.70 an ounce.
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI), which includes food and energy, rose 7.1% in November from a year earlier. This was below analysts’ expectations of 7.3%. The core CPI (which excludes food and energy) rose 6.0% in November from a year earlier. This was below analysts’ expectations of 6.1%. The CPI was thus below analysts’ expectations, leading investors to expect the Fed to slow its rate hikes.
The dollar index against a basket of six major currencies fell 1.09% overnight to 103.9840, with the greenback making dollar-denominated gold contracts cheaper for investors holding another currency.
Investors will be keeping an eye on the results of today’s (December 14) Fed monetary policy meeting. Investors expect the Fed to raise rates by 0.50% to 4.25-4.50% in this round, after raising them by 0.75% in four consecutive meetings.
The Spot Market is Open
Wednesday, December 14, 2022
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 11.50 | 1,808.50 1,809.50 | -2.00 -0.11% | 1,808.60 1,813.60 |
| Silver 11.50 | 23.63 23.73 | -0.08 -0.34% | 23.62 23.85 |
| Platinum 11.50 | 1,030.00 1,040.00 | -1.00 -0.10% | 1,026.00 1,044.00 |
| Palladium 10.50 | 1,861.00 2,011.00 | +3.00 +0.16% | 1,853.00 2,020.00 |
| Rhodium 06.00 | 11,000.00 13,000.00 | 0.00 0.00% | 11,000.00 13,000.00 |
