Gold and silver prices bounced back on Monday from last week’s steep losses as the U.S. dollar softened.
Price action
-
Gold futures
GCZ23,
+1.22%
expiring in December advanced $14, or 0.8%, to $1,662 per ounce on Comex. On Friday, the December contract settled at $1,648.90 an ounce, the lowest end-of-day level for a most-active contract since Sept. 27. -
Silver futures due in December
SIZ22,
+3.81%
climbed 44 cents, or 2.5%, to $18.51 per ounce after falling nearly 11% last week. -
Palladium futures expiring
PAZ22,
+0.99%
in December climbed $23, or 1.2%, to $2,020 per ounce, while platinum futures
PLF23,
+2.25%
increased by $15.60, or 1.7%, to $910 per ounce. -
Copper futures due in December
HGZ22,
+0.53%
increased by 3 cents, or 0.7%, to $3.45 per pound.
What’s happening
Even as gold prices rebounded on Monday, hopes for a durable rebound for the yellow metal — and, increasingly, other commodities as well — are dimming as investors anticipate the Federal Reserve will continue hiking interest rates into the first quarter of 2023, potentially exacerbating an expected global economic slowdown.
“It is pretty much clear that the Fed will continue to increase its interest rate, and there are no signs of them slowing down their monetary policy any time soon,” said Naeem Aslam, chief market analyst at AvaTrade.
