Gold futures saw a downward trend on Friday, February 10th, with prices being impacted by the strong dollar and rising US Treasury yields.
- The gold futures closed at $1,874.5/ounce, down $4 or 0.21%, and were down 0.1% for the week.
- The silver futures, on the other hand, saw a decline of 6.8 cents, or 0.31%, at $22.075 an ounce.
- The platinum futures were down by $12.4 or 1.29% at $951.8/ounce.
- The palladium futures fell by $91.8 or 5.7% to settle at $1,524.9/ounce.
The strong dollar reduces the attraction of gold, making it more expensive for holders of other currencies. The rebound in US Treasury yields also increases the opportunity cost of holding gold, given that gold is an asset without interest. The dollar index against a basket of six major currencies was up 0.38% to 103.6290, with the greenback gaining momentum after the University of Michigan survey showed an improvement in consumer sentiment. The consumer sentiment index rose to 66.4 in February, beating analysts’ expectations of 65.1 and surpassing January’s score of 64.9. The index of confidence in the current economic situation also improved to 72.6, however, the index of sentiment over the next six months fell to 62.3.
According to analysts, gold prices will continue to move in a narrow range as investors await the release of the US Consumer Price Index (CPI) on February 14th. Investors will also keep a close eye on statements by Federal Reserve officials for any indication of the direction of Fed interest rates.
The Spot Market is Closed
Saturday, February 11, 2023