Gold rises on inflation concerns. topping $1,800 as the dollar weakened and investors awaited policy decisions from key central banks.
Federal Reserve policymakers meet next week and are expected to begin responding to inflationary pressures. Before that, the Bank of Japan and European Central Bank have policy announcements scheduled for Thursday.
While the dollar’s softness made the yellow metal more attractive as an alternate investment, gold faced some pressure from profit takers after it climbed to the highest level since early September on Friday. The 10-year U.S. Treasury yield also edged higher, which is bearish for gold.
December gold futures rose 1.6% last week to settle at $1,796.30 an ounce on Comex after the front-month contract advanced 0.8% Friday. Gold retreated 3.4% in September after gaining just 90 cents in August. It dropped $14.60 in the third quarter. The yellow metal is down 5.2% so far in 2021. The December contract is up $7.90 (+0.44%) an ounce to $1,804.20 and the DG spot price is $1,805.50.
The Fed is “on track” to begin tapering asset purchases introduced to prop up the economy during the pandemic as early as next month, Chairman Jerome Powell said Friday. If the economy remains resilient, the central bank could end its quantitative easing program entirely by mid-2022.
In other economic news, investors will be watching for the release of the S&P Case-Shiller home price index and the consumer confidence index on Tuesday, U.S. data on wholesale inventories and durable goods on Wednesday and U.S. GDP and weekly initial jobless claims on Thursday. On Friday, G-20 finance and health ministers will meet jointly ahead of a summit of the countries’ leaders over the weekend.
December silver futures increased 4.7% last week to settle at $24.45 an ounce on Comex after the front-month contract gained 1.2% Friday. Silver retreated 8.2% in September, its fourth consecutive monthly decline, and plummeted 16% in the third quarter. The metal is down 7.4% so far this year. Silver prices are tied to industrial demand. The December contract is up $0.086 (+0.35%) to $24.535 and the DG spot price is $24.52.
Spot palladium fell 2.4% last week to $2,045.50 an ounce, though it rose 0.5% Friday. It lost 23% in September, 31% in the third quarter and is down 17% so far in 2021. Currently, the DG spot price is up $1.40 an ounce to $2,054.00.
Spot platinum dropped 1.2% last week to $1,053.00 an ounce after slipping 0.2% Friday. The metal lost 5.3% last month and 10% last quarter. It’s down 1.9% so far this year. The DG spot price is currently up $2.20 an ounce to $1,059.80.
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