Gold prices rise

17 Oct 2022 , 02:35 PM

At 04:05 GMT, the spot price of gold increased 0.4% to $1,648.91 per ounce. During the previous week, the metal had its largest weekly decrease since July. A 0.4% increase brought U.S. gold futures to $1,655.30. While the benchmark 10-year Treasury yields in the United States dropped and moved away from the 14-year peak reached last week, the dollar index remained unchanged.

According to a study released by the University of Michigan on Friday, consumer confidence increased in October, and inflation forecasts actually declined slightly, maintaining the consensus for another 75-basis-point rate hike.

Unexpectedly, retail sales in the US were unchanged in September. James Bullard, president of the St. Louis Fed, stated on Friday that the most recent CPI data justifies continuing to “frontload” through higher rate hikes of three-quarters of a percentage point, but that this does not imply that rates must be hiked above the central bank’s forecasts.

The opportunity cost of owning gold grows as a result of gold’s strong sensitivity to rising U.S. rates. The highest single-day outflow inflow since September 26 occurred on Friday as holdings of SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, decreased by 3.18 tonnes. Platinum increased by 0.3% to $901.67, palladium increased by 1.7% to $2,022.60, while spot silver increased by 0.7% to $18.39 per ounce.

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