Gold futures closed at their lowest level in over a week on Tuesday, March 7th, after Federal Reserve Chairman Jerome Powell signaled an aggressive interest rate hike to pull inflation down to the Federal Reserve’s target level.
- Gold futures fell by $34.60 or 1.87% to settle at $1,820 an ounce, marking the lowest close since February 24th.
- Silver futures also took a hit, down 93.60 cents or 4.43% at $20.199/ounce.
- Platinum futures fell by $42.30 or 4.32% to settle at $936.30 an ounce.
- Palladium futures fell by $53.90 or 3.8% to settle at $1,370.60 an ounce.
The decline in gold contracts followed Powell’s semi-annual statement on US monetary policy and economic conditions to the Senate Banking Committee, during which he stated that the latest US economic data was stronger than expected. Powell’s statement indicates that the Fed’s terminal rate will be higher than expected, and that if all the data suggests that the Fed should tighten monetary policy faster, the Fed will speed up raising interest rates.
Powell also noted that although inflation has started to slow down after hitting its peak last year, the process of bringing inflation down to the 2% target is still a long and uneventful road. The Fed’s mission to fight inflation is not yet over, and it needs to tighten monetary policy for a while.
Investors will be closely monitoring Powell, who will give his quarterly monetary and economic policy statement to the House of Representatives Financial Services Committee on March 8th.
The Spot Market is Open
Wednesday, March 8, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 11.10 | 1,810.20 1,811.20 | -3.40 -0.19% | 1,809.10 1,815.20 |
| Silver 11.10 | 19.90 20.00 | -0.14 -0.72% | 19.86 20.18 |
| Platinum 11.10 | 930.00 940.00 | -1.00 -0.11% | 929.00 944.00 |
| Palladium 11.00 | 1,298.00 1,448.00 | -2.00 -0.15% | 1,295.00 1,453.00 |
| Rhodium 06.00 | 9,000.00 11,000.00 | 0.00 0.00% | 9,000.00 11,000.00 |