On Thursday, September 14, gold futures experienced a slight uptick despite facing headwinds from a robust dollar and escalating US government bond yields.
Gold futures eked out a modest gain of 30 cents, equivalent to a mere 0.02%, concluding the session at $1,932.80 per ounce. Meanwhile, silver struggled, falling by 18.70 cents or 0.81% to settle at $22.994 per ounce. Platinum futures fared slightly better, climbing $5.90, or 0.65%, to close at $911.10 per ounce, while palladium lost $6, or 0.5%, settling at $1,254.80 per ounce.
The dollar, gauged against a basket of six major currencies, exhibited resilience, surging by 0.58% to reach 105.3816. Concurrently, the yield on 10-year US government bonds rose to 4.280% during the overnight session.
The formidable ascent of the dollar exerts upward pressure on gold contracts priced in the same currency, rendering them less accessible to investors holding alternative currencies. Simultaneously, the surge in US bond yields amplifies the cost of retaining gold, as the precious metal does not generate interest.
Market participants are closely monitoring the upcoming Federal Reserve monetary policy meeting scheduled for September 19-20. According to the latest data from the CME Group’s FedWatch Tool, investors assign a substantial 97.0% likelihood that the Fed will maintain interest rates within the 5.25-5.50% range. In contrast, only a marginal 3.0% probability is attributed to the Fed increasing interest rates by 0.25% to the 5.50-5.75% range during the impending meeting.
In the midst of these dynamics, the precious metals market remains finely balanced, with gold managing to inch upward, albeit minimally, amid a resilient US dollar and rising bond yields. Investors continue to monitor the Fed’s decisions closely, as they hold the key to the future direction of both the dollar and precious metals.
The Spot Market is Open
Friday, September 15, 2023
| Metals Updated at | USD Price | Change | %Change |
| Gold 07.00 | 1,909.80 1,910.80 | -0.90 -0.05% | 1,909.30 1,911.80 |
| Silver 07.00 | 22.60 22.70 | -0.03 -0.11% | 22.60 22.73 |
| Platinum 07.00 | 907.00 917.00 | 0.00 0.00% | 906.00 918.00 |
| Palladium 07.00 | 1,220.00 1,280.00 | -4.00 -0.33% | 1,208.00 1,292.00 |
| Rhodium 05.00 | 3,450.00 4,550.00 | 0.00 0.00% | 3,450.00 4,550.00 |