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Metals market today: Gold boosted to $1,672 as dollar falls to one-week low

By Indrabati Lahiri

09:35, 30 September 2022

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In this article:
Aluminum
Aluminium Spot
2567.41 USD
84.46 +3.430%
AALl
Anglo American
33.065 USD
-0.04 -0.120%
ANTO
Antofagasta
14.275 USD
0.195 +1.390%
Copper
Copper
3.8575 USD
0.06 +1.580%
GLEN
Glencore
5.5900 USD
0.012 +0.220%

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A man holding a gold bar in a newspaper
Gold was buoyed by the US dollar hitting a one-week low on Friday, but was still set for the worst quarter since early 2021 – Photo: Getty

Precious metals were buoyant on Friday morning, ending the week on an upbeat note, with gold, silver, platinum and palladium all up, as the dollar (DXY) fell to a one-week low.

China's Caixin General Manufacturing purchasing manager's index (PMI) for September fell from 49.5 in August, to 48.1 this month, also providing a short-term boost to precious metals as investors still worry about recession.

However, speculation of the US Federal Reserve coming out with even more aggressive rate hikes in the coming months went a long way towards capping precious metal prices.

Precious metals, especially gold, are often the go-to choices in times of high inflation. However, due to the US Federal Reserve continuously hiking interest rates, investors are more attracted to interest bearing assets and the US dollar (DXY) as the inflation hedge of choice right now.

Gold inched up 0.7% to $1,672 per troy ounce, with a weekly rise of about 1.7%. However, the precious metal was still on track for the worst quarterly drop since early 2021.

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Gold set for its worst quarter since early 2021

Metals price performance

Silver edged up 1.8% to $19.10 per troy ounce, as the precious metal saw a weekly rise of about 1.7%, supported by a falling US dollar (DXY).

Platinum rose 1.2% to $875 per troy ounce, boosted by new demand from green hydrogen, which is predicted to account for more than 100,000 troy ounces from next year, according to a recent Metal Focus' Hydrogen Economy Quarterly Service report. Palladium also climbed up 0.8% to about $2,219 per troy ounce.

Copper increased 1.5% to $3.40 per pound, with a weekly rise of 3.8%, as investors are hopeful that government stimulus measures will pay off soon for the infrastructure and construction sectors in China. Iron ore inched down from CNY 715 per tonne in the previous trading session to about CNY714 in this session. Aluminium edged up 2.2% to $2,245 per tonne.

The US dollar index (DXY) inched down from 113.7 in the previous session to 112.2 on Friday morning.

US 10-year Treasury yields dropped from 3.8% in the previous session to 3.6% in the current session.

Top mining ETFs and mining stocks

The GDX ETF saw a weekly gain of about 6% this last week

The Van Eck Gold Miners ETF (GDX) inched up 0.5% to $23.60, in the last trading session, with a weekly increase of about 6%.

Oil - Brent

86.01 Price
-1.240% 1D Chg, %
Long position overnight fee 0.0007%
Short position overnight fee -0.0149%
Overnight fee time 22:00 (UTC)
Spread 0.04

Gold

1,798.06 Price
-0.280% 1D Chg, %
Long position overnight fee -0.0188%
Short position overnight fee 0.0073%
Overnight fee time 22:00 (UTC)
Spread 0.33

Oil - Crude

80.34 Price
-1.310% 1D Chg, %
Long position overnight fee -0.0024%
Short position overnight fee -0.0116%
Overnight fee time 22:00 (UTC)
Spread 0.03

Natural Gas

6.21 Price
-8.960% 1D Chg, %
Long position overnight fee 0.0408%
Short position overnight fee -0.0658%
Overnight fee time 22:00 (UTC)
Spread 0.005

The Van Eck Junior Gold Miners ETF (GDXJ) edged up 0.8% to $28.60, in the previous trading session, with a weekly rise of about 6.8%.

The S&P Global Metals and Mining ETF (XME) dropped 1.8% to about $43.2 in the previous session, with a weekly gain of around 5.1%.

Glencore (GLEN) inched up 0.3% to GBP 4.80, with a weekly rise of about 7.5%.

Rio Tinto (RIOgb) rose 2.6% to AUD 93.30, with a weekly upswing of about 1.7%.

Anglo American (AALI) rose 0.9% to GBP 27.80, with a weekly increase of about 5.3%.

Antofagasta (ANTO) increased 1.1% to GBP 11, with a weekly rise of about 6.5%.

Today’s market moving events

The Caixin General Manufacturing PMI for September was released today, coming in at 48.1, down from 49.5 in the previous month.

Investors are also looking forward to the Michigan Consumer Sentiment final numbers for September, due to be released later in the day.

 

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