On Monday, September 18, gold futures closed in positive territory, with the weakening dollar acting as a catalyst for increased gold buying. As investors anxiously await the monetary policy meeting of the Federal Reserve (Fed) scheduled for later this week, the precious metals market is experiencing notable fluctuations.
Gold Futures: The gold futures market saw a commendable rise of $7.20, equivalent to a 0.37% increase, ultimately closing at $1,953.40 per ounce.
Silver Futures: Silver futures also experienced gains, with an uptick of 11.20 cents or 0.48%, concluding at a price of $23.498 per ounce.
Platinum Futures: Platinum futures recorded an increase of $8.80, or 0.95%, ending the session at $938.30 per ounce.
Palladium Futures: In contrast, palladium futures witnessed a decline, sliding by $8.70, or 0.7%, and settling at $1,244 per ounce.
The driving force behind the positive performance of gold futures was the weakening of the dollar, which made gold more attractive to investors holding currencies other than the U.S. dollar. The dollar index, a gauge measuring the dollar’s strength against a basket of six major currencies, fell by 0.11% to 105.2014 overnight. This drop in the dollar’s value further fueled interest in gold as an investment option.
While gold futures settled within a relatively narrow range, market participants remained attentive to the impending Fed meeting. The Federal Reserve’s Monetary Policy Committee (FOMC) is scheduled to convene on Tuesday, September 19, and will disclose its meeting resolutions on Wednesday, September 20, in accordance with U.S. time zones.
According to the latest data from CME Group’s FedWatch Tool, market sentiment is strongly inclined towards a particular outcome, with nearly 100% of investors foreseeing the Fed maintaining interest rates within the range of 5.25% to 5.50% at this meeting. Additionally, there is a 69% probability that the Fed will continue to keep interest rates at the same level during their November meeting.
The upcoming monetary policy meeting holds significant importance as the Fed is set to release its policy interest rate forecast, often referred to as the “Dot Plot.” Moreover, critical economic indicators, including figures related to inflation, unemployment, and U.S. economic growth, will be unveiled during the meeting. Following the meeting, Fed Chair Jerome Powell will hold a news conference, providing insights into the direction of interest rates and offering clarity on the central bank’s outlook for the economy.
As the precious metals market remains influenced by the shifting dynamics of currency valuations and the impending Fed meeting, investors and analysts alike are closely monitoring these developments for potential market implications in the days ahead.
The Spot Market is Open
Tuesday, September 19, 2023
| Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
| Gold 07.50 | 1,932.90 1,933.90 | -0.60 -0.03% | 1,923.70 1,935.30 |
| Silver 07.50 | 23.23 23.33 | +0.01 +0.04% | 23.20 23.35 |
| Platinum 07.50 | 935.00 945.00 | 0.00 0.00% | 934.00 946.00 |
| Palladium 07.45 | 1,222.00 1,282.00 | 0.00 0.00% | 1,220.00 1,285.00 |
| Rhodium 05.00 | 3,450.00 4,550.00 | 0.00 0.00% | 3,450.00 4,550.00 |