In a favorable turn of events for investors, gold futures closed higher on Friday (May 19) due to a weakening US dollar, which boosted the demand for gold.
The price of gold futures experienced a substantial increase of $21.80, equivalent to a 1.11% rise, closing at $1,981.60 per ounce. However, despite this positive development, gold futures recorded a weekly decline of 1.9%, marking the most significant drop since the beginning of February.
Meanwhile, silver futures also witnessed a notable upswing, gaining 42.70 cents or 1.81% to conclude the session at $24.06 per ounce. Furthermore, the platinum contract experienced a surge of $17.50, or 1.65%, closing at $1,075.70 per ounce. Palladium futures followed suit, rising by $73.60 or 5.1% to settle at $1,523.80 per ounce.
The upward momentum in gold prices can be attributed to the weakening of the US dollar. This depreciation renders gold contracts more appealing to investors using different currencies, as it makes them relatively cheaper.
The dollar index, which measures the value of the US dollar against a basket of six major currencies, experienced a decline of 0.37% to reach 103.1924.
Additionally, gold prices rebounded from a technical standpoint. After experiencing three consecutive days of decline, the price reached a seven-week low before making a remarkable recovery.
New York Federal Reserve President John Williams made an announcement during the Fed Research Conference on Friday, suggesting that the US economy might revert to the ultra-low interest rate environment witnessed prior to the COVID-19 pandemic in early 2020.
Looking ahead, investors eagerly await crucial economic data from the United States, including the release of the minutes from the Fed’s May meeting on Wednesday (May 24), gross domestic product (GDP) data on Thursday, and inflation data on Friday. These reports are expected to have a significant impact on market sentiment and may influence the future trajectory of gold prices.
The Spot Market is Closed
Saturday, May 20, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 04.00 | 1,977.70 1,978.70 | +20.30 +1.04% | 1,953.70 1,985.50 |
| Silver 04.00 | 23.83 23.93 | +0.34 +1.47% | 23.39 24.11 |
| Platinum 04.00 | 1,063.00 1,0731,.00 | +12.00 +1,14% | 1,048.00 1,086.00 |
| Palladium 04.00 | 1,488.00 1,548.00 | +50.00 +3.48% | 1,434.00 1,566.00 |
| Rhodium 04.00 | 5,900.00 7,900.00 | 0.00 0.00% | 5,900.00 7,900.00 |