Business News Asia
Gold futures closed at a one-week high on Tuesday (Dec. 20) as weakness in the dollar boosted the appeal of gold futures. Investors are watching for the release of the U.S. personal consumption expenditures (PCE) index on Friday.
- Gold futures rose $27.7, or 1.54%, to close at $1,825.4 per ounce.
- Silver futures rose $1.072, or 4.62%, to close at $24.271 per ounce.
- Platinum futures rose $25.3, or 2.56%, to close at $1,013 per ounce.
- Palladium futures rose $68.60, or 4.1%, to close at $1,733.50 per ounce.
Gold futures boosted by dollar depreciation. The dollar index was 0.69% lower overnight against a basket of six major currencies at 104.0110. The dollar’s depreciation makes gold contracts denominated in dollars cheaper for investors holding other currencies. Against the yen, the U.S. dollar recorded a significant decline. The Bank of Japan (BOJ) surprised the market when it announced an expansion of the interest rate framework for government bonds at its meeting yesterday.
The markets turn their attention to the publication of the U.S. PCE index on Friday. Analysts expect the PCE index to indicate that inflation has peaked. The PCE index is an inflation indicator that can detect changes in consumer behavior and covers prices for goods and services more comprehensively than the U.S. Department of Labor’s Consumer Price Index (CPI) data.
Analysts expect the overall PCE index, which includes food and energy, to rise 5.5% year over year in November. This would be a slowdown from 6.0% in October. The core PCE index, which excludes food and energy and is the Fed’s main inflation indicator, is expected to rise 4.7% in November. On a year-over-year basis, that would represent a slowdown from 5.0% in October.
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Wednesday, December 21, 2022