In a continuation of its downward trajectory, gold futures marked their sixth consecutive day of decline on Monday (Aug. 14), driven by the persistently strong dollar and an upward surge in US Treasury yields. The simultaneous impact of these factors weighed heavily on the precious metal market. Investors remain vigilant as they await the release of crucial US economic data this week, particularly the July retail sales figures, in the pursuit of signals that could shed light on the future interest rate decisions of the Federal Reserve (Fed).
The latest session saw gold futures dip by $2.60, equivalent to 0.13%, settling at $1,944.00 per ounce. In a similar vein, silver futures experienced a decline of 3.50 cents, or 0.15%, resting at $22.708 per ounce. Platinum futures registered a drop of $7.80, accounting for 0.85%, and closed at $906.80 per ounce. Palladium futures witnessed a steeper decrease, plummeting by $36.20, which translates to 2.8%, ultimately settling at $1,272.90 an ounce.
This extended slide in gold contracts follows a significant decline of nearly 1.5% observed last week, marking the most substantial weekly drop since the week ending June 23.At the heart of these movements lies the strength of the dollar and the rallying US Treasury yields. The dollar index, gauging the dollar’s performance against a basket of six major currencies, demonstrated a notable 0.34% ascent, reaching a value of 103.1898. Simultaneously, the 10-year US Treasury yield climbed by 4.20% overnight, reaching levels not seen since November 2022.
The robustness of the dollar renders gold contracts, which are priced in dollars, more expensive for investors employing alternate currencies. Concurrently, the surge in US Treasury yields contributes to an increased cost associated with holding gold. This is due to the fact that gold lacks an inherent interest-bearing component.
As market participants navigate this intricate landscape, their attention remains focused on pivotal US economic data slated for release throughout the week. Among these key data points are the minutes from the Federal Reserve’s meeting held on July 25-26. These minutes are being closely scrutinized for any indications that might offer insights into the trajectory of Fed interest rates. The outcome of these deliberations could play a pivotal role in shaping the future course of the gold market and wider financial landscape.
The Spot Market is Open
Tuesday, August 15, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 12.00 | 1,905.80 1,906.80 | -1.00 -0.05% | 1,903.50 1,908.80 |
| Silver 12.00 | 22.64 22.74 | +0.05 +0.24% | 22.51 22.77 |
| Platinum 12.00 | 902.00 912.00 | 0.00 0.00% | 899.00 914.00 |
| Palladium 12.00 | 1,240.00 1,300.00 | -4.00 -0.32% | 1,236.00 1,302.00 |
| Rhodium 05.00 | 3,350.00 4,750.00 | 0.00 0.00% | 3,350.00 4,750.00 |