1-866-646-8465

1-866-646-8465

Gold steadies as dollar bounce fizzles

Date Published: November 22, 2022

Gold futures ticked higher Tuesday, finding support as a sharp bounce by the U.S. dollar ran out of steam.

Price action
  • Gold for December delivery
    GC00,
    +0.17%

    GCZ22,
    +0.17%

    rose $9.20, or 0.5%, at $1,748.80 an ounce on Comex.

  • December silver
    SIZ22,
    +0.85%

    rose 42.3 cents, or 2%, to $21.295 an ounce.

  • January platinum
    PLF23,
    +1.35%

    was up $13.60, or 1.4%, at $1001.50 an ounce, while December palladium
    PAZ22,
    +0.57%

    rose $18, or 1%, to $1,871 an ounce.

  • December copper
    HGZ22,
    +1.50%

    gained 6.4 cents, or 1.8%, to trade at $3.64 a pound.

Market drivers

Gold slid on Monday, extending the previous week’s retreat, as the dollar bounced sharply higher. The ICE U.S. Dollar Index
DXY,
-0.41%
,
a measure of the currency against a basket of six major rivals, was off 0.4% after jumping nearly 1% on Monday.

A stronger dollar can be a weight on commodities priced in the unit, making them more expensive to users of other currencies.

“Though the latest cooling of U.S. inflation has dampened fears of rampant inflation and thus ever more pronounced rate hikes by the U.S. Federal Reserve, it is still clear that the central bank has not yet finished tightening its monetary policy. After all, at 7.7% inflation is still a long way off its 2% target,” wrote analysts at Commerzbank.

Moreover, a November rebound by gold, with the metal up 6.6% month to date, has been driven largely by short covering, they wrote, a factor that appears to have run its course with Commodity Futures Trading Commission data showing that speculative traders now carry net long positions in gold futures, the Commerzbank analysts said.

“We are sticking with our assessment that the gold price will only recover lastingly once an end to the rate hikes is in sight. This is likely to be the case in the first quarter of 2023,” they wrote.

Recent Articles

The National Debt Is Rapidly Getting Out of Hand

The National Debt Is Rapidly Getting Out of Hand

Higher interest rates are a tool utilized by the Federal Reserve to fight inflation. And while it may prove successful, it may also come at the cost of a constrained economy. Many of the side effects of high interest rates are obvious—difficulty in borrowing means...

What Makes Modern Inflation Unique?

What Makes Modern Inflation Unique?

Comparing the inflation of today to inflation during the 1970s AUSTIN, Texas, March 13, 2024 /PRNewswire/ -- While the Federal Reserve appears to be bringing the soaring inflation of the last few years under control, Americans are still feeling its effects on their...

Why Are CEOs Dumping Stocks?

Why Are CEOs Dumping Stocks?

Did you know that you can sometimes tell when a storm is coming by observing changes in animal behavior? Many animals—including birds, cows, sheep, and frogs—are known to indicate through their behavior that a storm is imminent by seeking shelter. The same is often...

How Much Do Elections Impact Our Economy, Really?

How Much Do Elections Impact Our Economy, Really?

Panel of industry professionals examines the economic impacts of elections and why gold may be a smart buy before election results are in AUSTIN, Texas, March 6, 2024 /PRNewswire/ -- Is a "wait and see" approach to elections a smart move when it comes to...

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 Kit and Global Gold Forecast Special Report Thumbnail

Shop Now

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

Shop Now