Gold falls $30 due to strong dollar and U.S. GDP growth in third quarter

Gold futures closed more than $30 lower on Thursday (Dec. 22), driven by the strong dollar. In addition, fears that the U.S. Federal Reserve (Fed) will aggressively raise interest rates after the U.S. released strong economic data also caused bearish sentiment in the paper gold market.

  • Gold futures fell $ 30.1, or 1.65%, to close at $ 1,795.3 per ounce.
  • Silver futures were down 57.2 cents, or 2.36%, at $23.622 per ounce.
  • Platinum futures were down $17.4, or 1.74%, at $984.6 per ounce.
  • Palladium futures rose $5.60, or 0.3%, to settle at $1,672.40 per ounce.

The gold contract slipped from the $1,800 level as dollar strength made dollar-denominated gold contracts more expensive for investors holding other currencies. The dollar index rose 0.25% overnight against the other currencies in the basket to 104.4410.

Investors are also concerned that strong U.S. economic data will prompt the Fed to aggressively raise interest rates. According to the U.S. Commerce Department, gross domestic product (GDP) grew 3.2% in the third quarter of 2022, above initial and second estimates of 2.6% and 2.9%, respectively, due to strong consumer spending.

The Labor Department reported that initial jobless claims rose by 2,000 last week to a seasonally adjusted 216,000, while the number of Americans continuing to file for unemployment benefits fell by 6,000 to 1.672 million.

However, the managing director and chief investment officer of Swiss Asia Capital said gold prices could reach $4,000 an ounce in 2023 as countries face recession in the first quarter of next year.

This will cause many central banks to slow their rate hikes. And this is a factor that attracts investment in gold.

The Spot Market is Open

Friday, December 23, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.40
1,793.60
1,794.60
+1.40
+0.08%
1,791.10
1,796.90
Silver
11.40
23.63
23.73
+0.09
+0.40%
23.50
23.77
Platinum
11.40
982.00
992.00
+2.00
+0.20%
976.00
994.00
Palladium
11.10
1,606.00
1,756.00
+4.00
+0.25%
1,598.00
1,760.00
Rhodium
06.00
10,750.00
12,750.00
0.00
0.00%
10,750.00
12,750.00

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