Gold futures closed higher on Monday, February 6, with investors buying following a sharp drop in the previous session.
- The gold futures rose by $2.9, or 0.15%, to close at $1,879.5 per ounce.
- Silver futures were down by 16.8 cents, or 0.75%, at $22.237 per ounce.
- Platinum futures decreased by $5.7, or 0.58%, to close at $974.6 per ounce.
- Palladium futures also dropped by $39, or 2.4%, to close at $1,579.40 per ounce.
The sharp drop in gold prices on Friday, which saw gold futures fall to a three-week low, was attributed to a strong dollar and a surge in US Treasury yields following the release of stronger-than-expected US employment data. The strong dollar reduces the appeal of gold, making gold contracts more expensive for holders of other currencies, while higher US Treasury yields increase the opportunity cost of holding gold, an asset that does not pay interest.
Investors will be keeping an eye on US President Joe Biden’s annual State of the Union address to Congress on Tuesday, February 7. Biden is expected to provide insight into the direction of US policy, which is facing numerous challenges, including the conflict between the US and Russia over the Ukraine war, the trade war between the US and China, and recent tensions from the shooting of a Chinese spy balloon.
The Spot Market is Open
Tuesday, February 7, 2023