Gold futures faced a downward trend on Tuesday, September 5th, impacted by the relentless strength of the U.S. dollar and a rally in U.S. Treasury yields.
Gold futures experienced a decline of $14.50, marking a 0.74% decrease and closing at $1,952.60 per ounce. In a similar vein, silver futures dipped by 68.90 cents, or 2.81%, settling at $23.873 per ounce, while platinum futures saw a significant drop of $35.20, representing a 3.63% decrease, concluding at $933.50 per ounce. Meanwhile, palladium futures recorded a loss of $13.40, equivalent to a 1.1% decrease, with a closing price of $1,214 per ounce.
The dollar index, measuring the dollar against a basket of six major currencies, surged by 0.66% to reach 104.8080. Simultaneously, the 10-year U.S. Treasury yield witnessed a notable increase, reaching 4.234% overnight.
The strength of the U.S. dollar has had a pronounced impact on gold contracts, which are priced in dollars. This has rendered gold less attractive to investors holding other currencies due to the relatively high prices. Additionally, the rising U.S. Treasury yields have contributed to an increase in the opportunity cost of holding gold, as gold does not generate interest income like other interest-bearing assets.
As the market absorbs these developments, investors are closely monitoring the release of the U.S. August Consumer Price Index (CPI) scheduled for Wednesday, September 13th. This data will be pivotal in gauging the future direction of interest rates, particularly ahead of the upcoming Federal Reserve meeting (Fed) scheduled for September 19th to 20th. The Fed’s decisions and outlook on interest rates will play a crucial role in shaping the trajectory of gold and other financial markets.
In summary, the downward trajectory of gold prices, influenced by a surging U.S. dollar and rising bond yields, underscores the complex interplay of economic factors impacting the precious metals market. The upcoming release of the CPI data and the subsequent Federal Reserve meeting will be closely watched by investors seeking insights into the market’s future direction.
The Spot Market is Open
Wednesday, September 6, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 12.00 | 1,926.40 1,927.40 | +1.00 +0.05% | 1,923.60 1,927.70 |
| Silver 12.00 | 23.56 23.66 | +0.05 +0.19% | 23.45 23.67 |
| Platinum 12.00 | 924.00 934.00 | -4.00 -0.43% | 920.00 939.00 |
| Palladium 11.40 | 1,188.00 1,249.00 | -4.00 -0.43% | 1,184.00 1,251.00 |
| Rhodium 05.00 | 3,450.00 4,650.00 | 0.00 0.00% | 3,450.00 4,650.00 |