Gold contracts closed lower on Wednesday due to profit-taking pressure as investors cashed out on gains made earlier in the day. The dip came after gold prices rose in response to the US Consumer Price Index (CPI) for April, which came in lower than expected year-on-year.
Gold futures ended down $5.80, or 0.28%, at $2,037.10 per ounce. Meanwhile, silver futures fell 24 cents, or 0.93%, to $25.658 per ounce. Platinum futures rose $3.10, or 0.28%, to close at $1,119.10 per ounce, and palladium futures rose $25.40, or 1.6%, to close at $1,605.10 per ounce.
The US Labor Department reported that its CPI rose 4.9% year-on-year in April, below analysts’ expectations of 5.0%. On a monthly basis, the CPI rose 0.4% in April, in line with analysts’ expectations.
Edward Moya, an analyst at OANDA, said that gold prices initially rose by 0.7% following the release of the April CPI data, but then investors began taking profits after realizing that the CPI was in line with monthly expectations. Moya added that this could allow the US Federal Reserve (Fed) to raise interest rates for a longer period of time.
Despite the dip, some analysts, including StoneX analyst Rhona O’Connell, are expecting gold to reach new highs due to concerns about the recession, crisis in the banking sector, and the US debt ceiling issue. These factors could drive investors to purchase gold as a safe haven asset.
The Spot Market is Open
Thursday, May 11, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 08.00 | 2,034.20 2,035.20 | +4.30 +0.21% | 2,029.20 2,035.30 |
| Silver 08.00 | 25.45 25.56 | +0.08 +0.32% | 25.31 25.56 |
| Platinum 08.00 | 1,115.00 1,125.00 | +1.00 +0.09% | 1,112.00 1,126.00 |
| Palladium 07.30 | 1,530.00 1,680.00 | -10.00 -0.65% | 1,528.00 1,693.00 |
| Rhodium 05.00 | 6,300.00 8,300.00 | 0.00 0.00% | 6,300.00 8,300.00 |