On Tuesday, March 21, gold futures closed more than 2% lower as investors took profits after the price of gold soared to an 11-month high on Monday. The fall came as investors waited for the outcome of the Federal Reserve meeting (Fed) that was held on Wednesday, March 22, US time.
According to data, gold futures fell by $41.70, or 2.10%, to settle at $1,941.10 an ounce. Meanwhile, silver futures were down 22.10 cents, or 0.98%, at $22.425/ounce. Platinum futures fell by $20.10, or 2.02%, to settle at $976.70 an ounce. Palladium futures were down $17.50, or 1.3%, at $1,383.10/ounce.
The drop in the price of gold futures came after the metal’s price rose strongly for two days in a row, touching $1,982.80/ounce on Monday, March 20, the highest level in 11 months or since April 18, 2022.
In addition, market concerns about the crisis in the banking sector resulted in investors reducing their holdings of gold as a safe haven asset. US Treasury Secretary Janet Yellen said that the US banking system is stable after the US government issued measures to relieve the liquidity crisis, and the government is ready to take more action if the crisis escalates. Yellen also said that the big US banks injecting $30 billion in deposits into the First Republic Bank (FRB) is a sign of confidence in the US banking system.
Investors are waiting for the results of the Fed meeting, held on Wednesday, March 22, US time. The Fed was expected to raise interest rates by 0.25% in this round of meetings, reflecting its confidence in handling crises in the banking system. The Fed will also continue to focus on staving off inflation.
The Spot Market is Open
Wednesday, March 22, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 10.25 | 1,939.60 1,940.60 | -0.20 -0.11% | 1,937.60 1,946.80 |
| Silver 10.25 | 22.35 22.45 | -0.01 -0.07% | 22.33 22.54 |
| Platinum 10.25 | 972.00 982.00 | +2.00 +0.21% | 970.00 985.00 |
| Palladium 10.10 | 1,326.00 1,476.00 | -4.00 -0.30% | 1,326.00 1,483.00 |
| Rhodium 05.00 | 7,300.00 9,300.00 | 0.00 0.00% | 7,300.00 9,300.00 |