Gold futures experienced a decline to a seven-week low on Wednesday (May 17) as the strength of the dollar exerted pressure on the market. This drop came in response to reports of progressing negotiations to increase the US debt ceiling.
Closing at $1,984.90 per ounce, gold futures were down by $8.1 or 0.41%, marking the lowest closing level since March 29, 2023. On the other hand, silver futures saw a modest increase of 0.40 cents or 0.02%, closing at $23.897 per ounce. The platinum contract, however, saw a more substantial rise, climbing by $15.70 or 1.47%, and closing at $1,082.60 per ounce. In the case of the Palladian contract for delivery in June, it dropped by $14.70 or 1%, concluding at $1,484.90 per ounce.
Gold futures suffered their second consecutive day of closure as the robust dollar weighed down the market. The dollar index, which measures the currency against a basket of six major counterparts, increased by 0.31% overnight to reach 102.8819.
Furthermore, progress made in negotiations to raise the US debt ceiling prompted investors to reduce their holdings of gold, which is typically considered a safe haven asset. According to the latest reports, President Joe Biden and US House Speaker Kevin McCarthy have agreed to strike a deal to raise the debt ceiling by Sunday (May 21), aiming to prevent defaults and a potential recession in the United States.
Investors are closely monitoring the upcoming release of the minutes from the Federal Reserve’s May meeting, scheduled for Wednesday, May 24. Additionally, the US Gross Domestic Product (GDP) figures, set to be unveiled on Thursday, May 25, are of great interest to market participants.
The Spot Market is Open
Thursday, May 18, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 11.00 | 1,981.90 1,982.90 | -0.20 -0.01% | 1,980.80 1,986.60 |
| Silver 11.00 | 23.68 23.78 | -0.06 -0.25% | 23.67 23.86 |
| Platinum 11.00 | 1,068.00 1,078.00 | -3.00 -0.28% | 1,068.00 1,082.00 |
| Palladium 11.00 | 1,460.00 1,520.00 | +6.00 +0.41% | 1,451.00 1,520.00 |
| Rhodium 05.00 | 5,900.00 7,900.00 | 0.00 0.00% | 5,900.00 7,900.00 |