Gold futures closed higher on Wednesday (March 1) as a weak dollar supported the market, but concerns remained about the Federal Reserve’s interest rate hike.
- Gold futures rose by $8.70, or 0.47%, to close at $1,845.40/ounce.
- Silver futures rose by 2.40 cents, or 0.11%, to close at $21.095/ounce.
- Platinum futures rose by $6.30, or 0.66%, to close at $961.80/ounce.
- Palladium futures rose by $16.70, or 1.2%, to settle at $1,437.60 an ounce.
The gold market was supported by the dollar’s depreciation, as the dollar index against a basket of six major currencies was down 0.37% at 104.4849 overnight. Jeff Wright, an analyst at Wolfpack Capital, said that China’s strong economic data has also given investors hope that gold demand in China will recover.
China’s National Bureau of Statistics (NBS) reported that February manufacturing purchasing managers’ index (PMI) came in at 52.6, up from 50.1 in January, marking the fastest pace of growth since April 2012. Additionally, China’s February services PMI came in at 56.3, up sharply from 54.4 in January, signaling the start of economic recovery after the government cancelled measures to control COVID-19. An index above 50 indicates an expansion in China’s manufacturing and service sectors.
However, the gold market was under pressure from concerns about Fed rate hikes. Minneapolis Fed President Neil Kashkari said he was open to a 0.25% or 0.50% rate hike at the Fed’s March 21-22 monetary policy meeting. Kashkari’s comments were in line with St. Louis Fed President James Bullard’s support for a 0.50 percentage point hike at the March meeting.
Overall, the gold market is still influenced by a variety of factors, including the value of the dollar, economic data, and the actions of the Federal Reserve. Investors will continue to monitor these factors to determine the direction of the market in the coming weeks.
The Spot Market is Open
Thursday, March 2, 2023