Gold Futures Close Up $6.8 as Dollar Weakens, Expects Fed to Slow Down Interest Rates

Gold futures closed for a fourth straight day on Tuesday, January 24th, with markets still buoyed by expectations that the Federal Reserve (Fed) will slowdown a rate hike at its weekly meeting. In addition, the dollar’s depreciation is also a positive factor for the gold market.

  • Gold futures rose by $6.8, or 0.35%, to close at $1,935.4 per ounce.
  • Silver futures also rose by 19.5 cents, or 0.83%, to close at $23.749 per ounce.
  • Platinum futures increased by $10.5, or 0.99%, to close at $1,066.8 per ounce.
  • Palladium futures went up by $34.10, or 2%, to settle at $1,735.50 per ounce.

The dollar’s depreciation makes gold contracts, priced in dollars, cheaper for investors holding other currencies. The dollar index, against a basket of six major currencies, was down 0.19% at 101.9150 overnight.

The gold market still has positive factors from the expectation that the Fed will raise interest rates by just 0.25% at its Jan. 31-Feb. meeting.

Analysts at Bank of America expect gold prices to surpass $2,000 per ounce in the coming months. This was driven by the Fed’s slowdown in raising interest rates, which in turn will lead to a weak dollar and lower US Treasury yields.

The Spot Market is Open

Wednesday, January 25, 2023

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/high
Gold
12.40
1,927.20
1,928.20
-10.20
-0.53%
1,925.70
1,940.30
Silver
12.40
23.50
23.59
-0.17
-070%
23.47
23.81
Platinum
12.40
1,050.00
1,060.00
-6.00
-0.57%
1,049.00
1,066.00
Palladium
12.20
1,656.00
1,806.00
-19.00
-1.13%
1,656.00
1,822.00
Rhodium
06.00
11,000.00
13,000.00
0.00
0.00%
11,000.00
13,000.00

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