Gold futures closed higher on Friday (March 3), buoyed by a weak dollar and a decline in US government bond yields.
- Gold futures rose by $14.10, or 0.77%, to close at $1,854.60 per ounce and gained more than 2% during the week.
- Silver futures also rose, closing at $21.238 per ounce, an increase of 1.61%.
- Platinum futures rose by 1.68%, closing at $979.40 per ounce.
- Palladium futures increased by 0.3%, settling at $1,449 per ounce.
The drop in US government bond yields reduced the opportunity cost of holding gold, which is an asset without interest. Meanwhile, the attractiveness of gold increased due to the weak dollar, making gold contracts cheaper for holders of other currencies.
Investors are awaiting Federal Reserve Chairman Jerome Powell’s speeches, hoping to glean any indication of the US economy’s direction and the Fed’s interest rates. The Fed is set to hold a monetary policy meeting on March 21-22. Powell will deliver his semiannual statement on monetary policy and economic conditions to Congress next week, speaking to the Senate Banking Committee on Tuesday, March 7, and the House Financial Services Committee on Wednesday, March 8.
Gold has traditionally been viewed as a safe-haven investment, and its value tends to rise when investors are uncertain about the economy’s future.
The Spot Market is Closed
Saturday, March 4, 2023