Gold futures witnessed a downturn on Monday (Nov. 20) influenced by a surge in U.S. bond yields, creating a drag on the market as investors slowed trading ahead of the Thanksgiving holiday.
The closing figures revealed a decline of $4.40, marking a 0.22% drop in gold futures, settling at $1,980.30 per ounce. In parallel, silver also experienced a setback, declining by 23.80 cents, or 1%, to settle at $23.614 an ounce. However, platinum futures displayed resilience, rising by $25.70, or 2.85%, closing at $927.40 per ounce. Palladium futures followed suit, climbing by $33.40, marking a 3.15% increase, to close at $1,092.30 an ounce.
The dip in gold contracts coincided with the rebound of the 10-year government bond yield to 4.476% the previous night. This surge in U.S. bond yields directly impacts the opportunity cost associated with holding gold, as the precious metal generates no return in the form of interest.
Investor focus remains on the impending release of the Federal Reserve Monetary Policy Committee’s meeting minutes held on October 31-November 1, scheduled for today (November 21) in the U.S. This release is anticipated to offer insights into the Federal Reserve’s stance on future interest rate directions.
According to CME Group’s FedWatch Tool, investor expectations indicate the Federal Reserve maintaining interest rates between 5.25-5.50% during its December 2023, January 2024, and March 2024 meetings, with a projected 0.25% reduction to the 5.00-5.25% level in the May 2024 meeting.
Looking ahead, the New York Gold Market will remain closed on Thursday, Nov. 23, in observance of Thanksgiving Day, signaling a pause in trading activities for the holiday.
The Spot Market is Open
Tuesday, November 21, 2023