Gold futures closed lower on Monday (March 27), with the market under pressure from rising US Treasury yields. The selling of gold was also fueled by easing concerns about the crisis in the banking sector.
Gold futures fell $30, or 1.51%, to close at $1,953.80 per ounce. Meanwhile, silver futures were down 19.40 cents, or 0.83%, at $23.145 per ounce; platinum futures were down $6.80, or 0.69%, at $977.10 per ounce; and palladium futures were down $10.30, or 0.7%, at $1,404.10 per ounce.
The 10-year Treasury yield surged to 3.496% overnight, increasing the opportunity cost of holding gold as it is an asset without interest in the form of interest. Furthermore, investors sold gold as a safe-haven asset due to the news of Silicon Valley Bank’s acquisition, which eased investor concerns about the banking crisis.
The decline in gold prices is likely to continue as investors await the release of the Personal Consumption Expenditure (PCE) Price Index on Friday. The PCE index is a gauge of inflation that the Federal Reserve closely monitors, as it can detect changes in consumer behavior and covers a broader range of prices for goods and services than the Consumer Price Index (CPI) data.
The market will be closely watching the PCE index release. The rise in bond yields has already affected gold prices, and the PCE index could further drive prices down if inflation remains within the Fed’s target range.
The Spot Market is Open
Tuesday, March 28, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 10.45 | 1,960.00 1,961.00 | +3.50 +018% | 1,955.90 1,964.90 |
| Silver 10.45 | 23.06 23.15 | -0.02 -0.09% | 23.00 23.26 |
| Platinum 10.45 | 973.00 983.00 | -3.00 -0.31% | 973.00 987.00 |
| Palladium 10.30 | 1,356.00 1,506.00 | -6.00 -0.59% | 1,356.00 1,514.00 |
| Rhodium 05.00 | 7,300.00 9,300.00 | 0.00 0.00% | 7,300.00 9,300.00 |