1-866-646-8465

1-866-646-8465

Gold pulls back Thursday as dollar remains firm
Date Published: May 12, 2022
Gloved hands holding up kilo gold bar

Gold futures fell Thursday, trading near a two-month low, as a firm U.S. dollar continued to pressure the metal.

Gold for June delivery
GC00,
-1.70%

GCM22,
-1.70%

fell $18.20, or 1%, to $1,835 an ounce, after bouncing off its lowest close since mid-February in the previous session. July silver
SIN22,
-3.96%

fell 63 cents, or 2.9%, to $20.95 an ounce.

The ICE U.S. Dollar Index
DXY,
+1.03%
,
a measure of the currency against a basket of six major rivals, was up 0.4%, trading near a 20-year high. A strong dollar is seen as a negative for commodities priced in the unit, making them more expensive to users of other currencies.

On the inflation front, wholesale prices slowed to 11% in April over the past year from 11.5%, the government said Thursday, still showing intense inflationary pressures in the guts of the U.S. economy. The April consumer-price index reading on Wednesday suggested inflation may have peaked, but still came in at a hotter than expected annual rate of 8.3%.

Another high reading on inflation ahead of the Fed’s next meeting in June could lead the central bank to consider a larger 75 basis point rate increase rather than the 50 basis point move that Fed Chairman Jerome Powell has said was on the table for the next two meetings, said Ricardo Evangelista, senior analyst at ActivTrades, in a note.

“Against such a backdrop, any gold strength resulting from the precious metal’s role as safe haven and inflation hedge is likely to remain capped by the rampant U.S. dollar,” he said.

In other metals on Comex, July copper 
HGN22,
-2.70%

 fell 2.6% to $4.10 a pound. July platinum
PLN22,
-5.89%

was down 4.5% to $946.10 an ounce, while June palladium
PAM22,
-7.44%

slumped 6.3% to $1,880.50 an ounce.

Recent Articles

How to Get the Most Out of Diversification

How to Get the Most Out of Diversification

On May 11, 2022, Forbes published an article regarding alternative assets and their importance in a portfolio. But knowing what to do and knowing how to do it are very different. With so many options and strategies, how can you know you’re making the best decisions...

Three Things to Read Before Buying Gold

Three Things to Read Before Buying Gold

Gold has once again been making headlines as the nation’s financial markets continue to face uncertainty. On April 22, 2022, Barron’s reported that gold had made yet another run at $2,000/oz., nearing its all-time-high reached in August 2020. That same day, Barron’s...

What Does Mintage Mean for Coins?

What Does Mintage Mean for Coins?

Mintage means more than the process of producing coins. The word “mintage” also refers to the maximum number of a specific coin that has been produced. According to the Royal Canadian Mint, mintage can range from 10 to 65,000 and beyond. Silver American Eagles, for...

Free Gold Info Kit

Sign up now to receive the ultimate guide to gold ownership, unlock special offers, and more.

Access Now

u.s. money reserve gold information kit 2022

Shop Now

Watch helpful videos about precious metals education, U.S. Money Reserve news, client testimonials, and more.

Shop Now