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

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