In a trading session marked by the dominance of a sturdy dollar and an upswing in US Treasury yields, gold futures concluded on a downtrend. Market participants keenly awaited the impending US inflation figures set to release on Thursday, aiming to glean insights into the Federal Reserve’s (Fed) interest rate trajectory.
Gold futures experienced a dip of $6.10, equivalent to a 0.31% decrease, settling at $1,970.00 per ounce. Simultaneously, silver futures underwent a decline of 48.40 cents, or 2.04%, closing at $23.232 per ounce. Meanwhile, platinum futures recorded a marginal drop of $1.60, representing a 0.17% decrease, to attain a value of $926.90 per ounce. In a parallel movement, palladium futures witnessed a more substantial decrease of $28.40, marking a 2.3% downturn and culminating at $1,236.20 per ounce.
The dollar index, which measures the dollar’s strength against a basket of six major currencies, registered a marginal uptick of 0.03%, reaching a value of 102.0423. In a similar vein, the 10-year US Treasury yield experienced an overnight surge of 4.066%.
The ascent of the dollar exerts pressure on gold contracts, as their dollar-denominated pricing renders them pricier for investors operating in other currencies. Concurrently, an uptick in US Treasury yields escalates the holding costs associated with gold, an interest-free asset.
The gold market encountered additional strain as Fed governor Michelle Bowman conveyed the necessity of sustained interest rate hikes to rein in inflation and bring it in line with the Fed’s 2% target.
Market participants remained focused on the impending release of the Consumer Price Index (CPI) for the US, a metric gauging inflation. The CPI report, scheduled for this Thursday, holds the potential to furnish crucial signals regarding the future course of Fed interest rates.
Market analysts’ projections for the headline CPI indicate an anticipated surge of 3.3% in July year-on-year, following a 3.0% increase in June. In parallel, the core CPI, which excludes volatile food and energy components, is predicted to experience a more pronounced 4.7% upswing in July year-on-year, compared to a 4.8% rise in June.
As market dynamics continue to be shaped by dollar strength and yield fluctuations, market participants remain vigilant in decoding these signals, striving to decipher the nuanced trajectory of precious metals and the broader financial landscape.
The Spot Market is Open
Tuesday, August 8, 2023
| Metals Updated at | USD Bid/Ask | Ounce Chnage | Low/High |
| Gold 11.00 | 1,932.40 1,933.40 | -4.20 -0.22% | 1,930.20 1,938.50 |
| Silver 11.00 | 23.11 23.21 | 0.00 +0.02% | 23.04 23.27 |
| Platinum 11.00 | 914.00 924.00 | -4.00 -0.44% | 911.00 928.00 |
| Palladium 11.00 | 1,208.00 1,268.00 | -6.00 -0.49% | 1,207.00 1,276.00 |
| Rhodium 05.00 | 3,350.00 4,750.00 | 0.00 0.00% | 3,350.00 4,750.00 |