On Wednesday, May 3, gold futures closed higher for the second consecutive day, buoyed by concerns over economic conditions and banking issues, which drove safe-haven purchases of the precious metal. Gold futures rose by 0.68%, or $13.70, to close at $2,037 per ounce. Meanwhile, silver futures rose by 0.24%, or 6.20 cents, to close at $25.681 per ounce. Platinum futures fell by 1.53%, or $16.50, to close at $1,061.80 per ounce, while palladium futures declined by 0.8%, or $4.20, to $1,416.80 per ounce.
Despite the recent upward trend in gold prices, investors remain cautious, and the precious metal still trades above $2,000. This apprehension stems from uncertainty over the Federal Reserve’s monetary policy meeting outcome, which occurred after the market’s close.
During the meeting, the Federal Open Market Committee (FOMC) voted unanimously to increase its short-term interest rate by 0.25% to a range of 5.00-5.25%. This marks the highest level since August 2007. The Fed’s decision to raise the interest rate could potentially impact the price of gold and other assets.
Apart from the interest rate hike, the price of gold was further supported by the depreciation of the US dollar. The weakening of the dollar enhances the attractiveness of gold by making gold contracts cheaper for holders of other currencies. On Wednesday, the dollar index, which measures the greenback against six major currencies, decreased by 0.58% to 101.3551.
In conclusion, the rise in gold prices can be attributed to both the Federal Reserve’s monetary policy decision and the declining value of the dollar. Investors remain watchful and will continue to monitor these developments, which could impact the price of gold and other assets in the near future.
The Spot Market is Open
Thursday May 4, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 09.40 | 2,041.20 2,042.20 | +0.10 0.00% | 2,039.60 2,075.70 |
| Silver 09.40 | 25.75 25.85 | +0.16 +0.61% | 25.50 25.94 |
| Platinum 09.40 | 1,059.00 1,069.00 | +5.00 +0.47% | 1,048.00 1,071.00 |
| Palladium 09.30 | 1,363.00 1,513.00 | +17.00 +1.26% | 1,340.00 1,516.00 |
| Rhodium 05.00 | 6,900.00 8,900.00 | 0.00 0.00% | 6,900.00 8,900.00 |