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Gold and silver weakened on Monday as investors bid up the U.S. dollar in anticipation of a September inflation report due out later in the week.

Price action
  • Gold for December delivery

    fell $25.30, or 1.5%, to $1,684 per ounce on Comex.

  • December silver

    shed 40 cents, or 2%, to $19.86 per ounce.

  • Palladium futures

    expiring in December climbed $56, or 2.6%, to $2,247.50 per ounce, while January platinum

    was down $4.90, or 0.5%, to $913 per ounce.

  • December copper futures

    gained 6 cents, or 1.7%, to $3.44 per pound.

What analysts are saying

Prices of gold and silver are moving lower yet again as precious-metals traders anticipate that the U.S. inflation data set for release on Thursday could increase the pressure on the Federal Reserve to continue hiking interest rates aggressively — potentially delivering another 75 basis point rate hike at the central bank’s November meeting.

“The broader outlook for gold remains one where central banks across the world look set on a course of a series of interest rate hikes to try and bring stubbornly high inflation back down towards their target figures,” said Rupert Rowling, a market analyst at Kinesis Metals, in a note to clients.

“The impact of these ever increasing rates has been to make gold a less desirable commodity to hold with its lack of yield making other interest-paying assets such as bonds more attractive in its place.”

The consumer-price index for September is due out on Thursday. Economists polled by FactSet expect the annualized inflation rate will slow to 8.1% from 8.3% last month, while the month-over-month rate is expected to accelerate to 0.2% from 0.1% in August.

The ICE U.S. Dollar Index
a gauge of the dollar’s strength against a basket of rivals, rose 0.3% to 113.10.

The Treasury market was closed for Columbus Day, a federal holiday that also has been recognized as Indigenous Peoples’ Day.

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