Gold futures registered positive gains on Monday, September 11, buoyed by a weakening dollar. Investors are closely monitoring the release of US inflation data this week, as it holds significant implications for the Federal Reserve’s interest rate decisions.
Gold futures saw an uptick of $4.50, equivalent to 0.23%, closing at $1,947.20 per ounce. In parallel, silver futures rose by 20.90 cents or 0.90%, settling at $23.383 per ounce. Platinum futures also made notable gains, climbing $7.50 or 0.84%, and closing at $902.30 per ounce. Meanwhile, palladium futures experienced a surge of $26.90, representing a substantial 2.3% increase, closing at $1,219.20 per ounce.
The dollar index, which gauges the greenback’s performance against a basket of six major currencies, recorded a notable 0.50% drop, reaching 104.5659 overnight. The dollar’s depreciation rendered gold contracts, which are priced in dollars, more appealing to investors. This shift reflects a broader trend where investors seek refuge in precious metals during periods of dollar weakness.
The report further notes that the dollar’s decline was particularly pronounced against the yen. This followed comments from Mr. Kazuo Ueda, Governor of the Bank of Japan (BOJ), suggesting a potential end to the use of a negative interest rate policy.
In the coming days, market participants will closely watch the release of the Consumer Price Index (CPI) for August on Wednesday and the Producer Price Index (PPI) for August on Thursday. These inflation figures will play a pivotal role in shaping expectations ahead of the Federal Reserve’s monetary policy meeting scheduled for September 19-20.
Analysts anticipate that the headline CPI, encompassing food and energy, will exhibit a year-on-year rise of 3.6% in August. This follows a 3.2% increase observed in July. Furthermore, the core CPI, which excludes food and energy, is projected to record a 4.3% year-on-year surge in August, after a 4.7% increase in July. These inflation metrics will be closely scrutinized for insights into the trajectory of monetary policy, as the Federal Reserve navigates a complex economic landscape.
The Spot Market is Open
Tuesday, September 12, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 13.40 | 1,919.70 1,920.70 | -2.00 -0.10% | 1,918.10 1,925.20 |
| Silver 13.40 | 22.95 23.06 | -0.09 -0.41% | 22.92 23.25 |
| Platinum 13.40 | 898.00 908.00 | -2.00 -0.22% | 894.00 912.00 |
| Palladium 13.40 | 1,192.00 1,252.00 | 0.00 0.00% | 1,188.00 1,257.00 |
| Rhodium 05.00 | 3,450.00 4,600.00 | 0.00 0.00% | 3,450.00 4,600.00 |