Gold Closes Slightly Lower but Still Records Weekly Decline as Investors Weigh the Impact of Fed’s Decision and Powell’s Comments
Financial World – September 23, 2023
According to news from the financial world on September 23, gold futures experienced some recovery on Thursday, rising slightly as investors continued to weigh the impact of the Federal Reserve’s monetary policy and Powell’s remarks. However, gold still recorded losses for the week, ending a roller coaster week with a more moderate tone.
December gold futures on the New York Mercantile Exchange closed at $1,946.20 an ounce, a $6 increase or 0.3%, despite falling slightly for the week. Meanwhile, silver prices for December rose 16 cents to close at $23.84 an ounce, representing a 0.7% increase and a cumulative gain of 2% for the week.
In other precious metals, platinum for October rose by $9.50 or 1%, closing at $934.10 an ounce and recording a 0.5% increase for the week. Palladium for December, however, fell by $13.40 or 1.1%, closing at $1,256 an ounce, representing a 0.3% decrease. December copper futures remained flat at $3.696 a pound for the day but experienced a 2.8% decline for the week.
Despite Wednesday’s Federal Reserve policy meeting signaling that the central bank expects to maintain policy rates above 5% for a longer period than anticipated, gold prices ended the week relatively unchanged. Analysts have expressed doubts about the possibility of further volatility in the near future.
“As a non-yielding asset, rising interest rates are generally negative for gold prices because they increase the opportunity cost of holding gold,” remarked Kinesis Money market analyst Mike Ingram in emailed comments.
It is important to note that the content, data, and tools provided in this article do not constitute investment advice and are only for reference purposes. The stock market carries inherent risks, so caution should be exercised when making investment decisions.