Gold prices tumbled on Thursday, reversing a modest gain from the prior session, after the Federal Reserve delivered its fourth 75 basis point interest rate hike since the start of the year.
Price action
-
Gold prices for December delivery
GCZ22,
-1.47%
were down $27, or 1.6%, at $1,622 per ounce on Comex. -
Silver prices for December
SIZ22,
-1.60%
delivery were off 67 cents, or 3.5%, at $18.92 per ounce. -
Palladium for December
PAZ22,
-2.71%
was off $80, or 3.3%, at $1,769 per ounce, while platinum for January
PLF23,
-2.96%
was down $37, or 4%, to $912 per ounce. -
Copper futures coming due in December
HGZ22,
-1.79%
skidded 8 cents, or 2.3%, to $3.39 per pound.
What’s happening
Precious metals traders blamed the Fed for the latest bout of weakness in gold and silver prices.
“Gold and silver turned sharply lower yesterday after Fed Chair Powell delivered a hammer-blow to sentiment across markets as he managed to both pull off the idea of the Fed may indeed soon pivot to a slower pace of rate hikes, but that any talk of a pause,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Treasury yields climbed, with the 10-year yield
TMUBMUSD10Y,
up 14.8 basis points to 4.208%. The ICE U.S. Dollar Index
DXY,
a gauge of the dollar’s strength against a basket of rivals, was up 1.5% at 113.
