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Daily Gold Update
Current precious metals news

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Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.


September 19: Gold drops again as dollar rallies

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold dropped another 0.8%, closing at a nine-month low under $1,216, as a rising dollar continued to draw investors away from alternative assets.

The dollar rose against most major rivals on speculation that U.S. interest rates will increase by more next year than previously forecast. In a policy statement issued this week, the Fed maintained its stance that rates will stay near zero for a "considerable time" after quantitative easing concludes next month. However, the central bank raised its median estimate for the federal funds rate to 1.375% from 1.125% by the end of 2015, implying a steeper rise once increases begin.

Higher interest rates strengthen the dollar and weigh upon precious metals and other commodities denominated in it for international trade. Higher rates also increase the opportunity cost for investors to hold gold and silver, which offer no yield, instead of bonds.

The Dow crept slightly higher on growing optimism following an uptick in leading economic indicators. The other precious metals fell harder than gold, which lost 1.2% on the week. Silver tumbled 3.6% to a four-year low. Platinum and palladium fell 0.9% and 2.3%, respectively.

At the Comex close: December gold dropped $10.30 to $1,216.60; September silver tumbled 67 cents to $17.78; October platinum shed $12.20 to $1,337.30; December palladium fell $19.05 to $812.35 an ounce.




September 18: Gold drops 0.7% on rising risk appetite

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold dropped 0.7%, closing at an eight-month low just under $1,227, after improving jobless data boosted risk appetite, reducing safe-haven demand.

The Dow and S&P 500 added 0.6% and 0.5%, respectively, closing at new record highs after first-time claims for unemployment benefits fell to a two-month low, boosting economic optimism. The positive jobless news trumped a fall-off in factory activity in the Fed's mid-Atlantic region this month, and reports that U.S. housing starts dropped in August.

Gold was also pressured by yesterday's Fed policy statement raising its forecast for interest rates to 1.375% from 1.125% by the end of next year. While the central bank reiterated its pledge to hold rates near zero for a "considerable time" after the end of quantitative easing in October, the higher forecast implies that rates will rise more steeply when the increases begin. Higher interest rates support a stronger dollar, weighing on gold and other commodities denominated in the currency for international trade by making them more expensive to foreign buyers.

The other precious metals fell harder than gold, with silver sliding 1.1% while platinum and palladium both lost 0.9%.

At the Comex close: December gold dropped $9 to $1,226.90; December silver 20 cents to $18.45; October platinum fell $12.70 to $1,349.50; and December palladium fell $7.40 to $831.40 an ounce.




September 17: Gold slips on Fed rate estimate

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 80 cents to close just under $1,236 before dropping an additional $5 per ounce to $1,231 after hours following the release of a mixed policy statement at the conclusion of this week's FOMC meeting.

The Fed reiterated that interest rates will be held near zero for a "considerable time" after the bond-buying program known as quantitative easing ends in October. Traders were concerned that any change in this language could signal a new disposition to raise rates sooner than expected, which would weigh on the gold price by boosting the dollar. That no change was made to this phrasing was widely viewed as a dovish sign.

As in its July statement, the Fed also noted that the economy is expanding at a "moderate" rate and the improving job market belies "significant underutilization" of labor resources. In a potentially significant change, the new statement cited inflation as "running below the committee's longer-term objective," whereas in July it said inflation was "somewhat closer" to the goal. Coincidentally, data released today showed that consumer prices fell in August for the first time in sixteen months. Low inflation gives the Fed leeway to keep interest rates lower for longer.

However, the Fed also conveyed a more hawkish tone by raising its median estimate for the federal funds rate at the end of 2015 from 1.125% to 1.375%, meaning steeper increases once they begin. This change in forecast lifted the dollar against most major rivals, pressuring gold and other commodities denominated in it for international trade by making them more expensive to overseas buyers.

The other precious metals tracked lower with gold. September silver lost 9 cents to $18.75; October platinum gave up $9.50 to $1,357.80; and December palladium lost $4.95 to $836.60 per ounce.




September 16: Gold rises on flat PPI, China easing

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold gained for a second session, edging up 0.2% to close near $1,237, as flat wholesale inflation reduced pressure on the Fed to raise interest rates and weighed on the dollar. Reports that China will supply $80 billion in broad-based monetary stimulus through its five biggest banks also supported the metal by raising inflation risk in the world's second-largest economy.

Falling food and energy prices kept U.S. producer prices flat in August, according to the Labor Department, falling short of forecasts and July's meager 0.1% rise. Released as the FOMCn begins its two-day September meeting, the data is expected to give the Fed additional leeway in its forward guidance for tightening monetary policy. Most economists expect the first rate increase to occur in mid-2015.

The World Gold Council reported today that China is projected to increase its gold reserves for the first time since 2009, following a trend within emerging economies to offset currency risk by holding proportionately more gold. Whereas China has the biggest foreign-exchange holdings in the world, merely 1.1% is held in gold, according to the most recent official figures. The U.S. and Germany, by contrast, maintain roughly 70% in the metal.

The dollar fell against most rivals in the wake of the August PPI data, supporting precious metals and other commodities denominated in it for international trade. Silver edged up slightly while platinum and palladium picked up 0.3% and 0.9%, respectively.

At the Comex close: December gold gained $1.60 to $1,236.70; December silver added a cent, to $18.66; October platinum rose $3.80 to $1,367.30; and December palladium picked up $7.30 to $844.20 an ounce.




September 15: Gold gains 0.3% on surging India demand

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold gained 0.3% to close above $1,235 as surging physical demand in India and bargain-hunting supported higher prices ahead of this week's FOMC meeting, which concludes on Wednesday.

In a bullish sign, gold imports surged 176% last month in India as the government relaxed restrictions on purchasing the metal overseas. Imposed to control the nation's current account deficit, import duties severely curtailed Indian gold demand last year, undermining the world gold price. India is world's second-largest gold consumer, second only to China.

Gold's gains came despite a rising dollar, which gained further against the UK pound and euro as Scotland prepares to vote on independence. Dollar strength typically weighs on the price of precious metals and other commodities denominated in the currency for intentional trade by making them more expensive to buyers overseas. Forex traders also bid up the dollar ahead of this week Fed meeting, and will look for any signal that raise interest rates may rise sooner than expected.

Gold also received a modicum of safe-haven buying after intense fighting resumed in the Ukraine despite the official cease-fire between Kiev and pro-Russian insurgents. Holdings in iShares Silver Trust, the world's largest silver-backed ETF, jumped 1% last week to a record high as investors took advantage of lower prices to build their portfolios.

The other precious metals were mixed, with silver and palladium inching higher by less than 0.1% while platinum slipped 0.5%. At the Comex close: December gold gained $3.60 to $1,235.10; December silver added one cent, to $18.56; October platinum dropped $7 to $1,363.50; and December palladium rose 85 cents to $836.90 an ounce.




September 12: Gold edges lower, other metals unchanged

Source: Dana Samuelson, American Gold Exchange

Austin, TX -- Gold edged lower again today while silver, platinum and palladium were virtually unchanged from yesterday’s Comex closing prices. The U.S. dollar was little changed on Friday as well.

Consumer confidence, as measured by the Thomas Reuters/University of Michigan consumer sentiment index, rose to 84.6 in September from 82.5 in August, its highest level in 14-months The slowly improving labor market, lower oil prices and gains in stock prices have all been factors in this increased consumer confidence. Another report showed retail sales rose at their fastest pace in four months in August as consumers increasingly parted with their hard earned dollars.

Traders are increasingly eyeing next week’s FOMC meeting. Some are anticipating the Fed to issue forward guidance indicating that the gradually improving U.S. economy will allow the Fed to begin raising interest rates sooner than expected. This has helped to buoy the dollar and, inversely, pressured gold.

At the Comex close: December gold fell $7.50 to $1,231.50; December silver gained 1 cent to $18.54; October platinum fell $0.20 to $1,370.50; December palladium gained $2.85 to $836.05 an ounce.




September 11: Precious metals trade lower

Source: Dana Samuelson, American Gold Exchange

Austin, TX -- Gold, silver, platinum and palladium all traded lower today despite the U.S. dollar weakening slightly against other major currencies. After trading range bound yesterday and into the overnight Asian session, precious metals came under selling pressure in the European market early this morning and new short-term lows were set in all four precious metals during the New York trading session.

Despite weakening a bit today, the U.S. dollar remains the short-term currency of last resort. The U.S. dollar index, which measures the dollar against a basket of major foreign currencies, fell 0.06% today to 84.20 but it remains on track for its ninth consecutive week of gains, its longest winning streak since 1997. At just under 107 Japanese yen to the dollar, the dollar is at its highest point relative to the yen since 2008. The dollar is at a 14-month high relative to the Euro, a nine-month high relative to British pound and a seven-month high against the New Zealand kiwi.

During the Comex session December gold bottomed at $1,235.30, December silver at 18.57, October platinum at $1,368.10 and December palladium at $830.60. Following these lows bidders came into the precious metals markets as the Comex session waned and prices rebounded slightly.

At the Comex close: December gold fell $6.30 to $1,239.00; December silver shed 32 cents to $18.53; October platinum fell $10.30 to $1,370.70; December palladium fell $15.65 to $833.30 an ounce. Prices for all four metals continued to rebounded modestly in the electronic trading session following the Comex close.




September 10: Precious metals range bound

Source: Dana Samuelson, American Gold Exchange

Austin, TX -- Gold, silver and platinum traded mostly sideways today in narrow ranges. Palladium, the strongest of the precious metals during the recent bout of price weakness, continued to track lower. The U.S. dollar, which has been very strong over the last six weeks against all major currencies, pressuring precious metals, was range bound, too.

Overnight gold traded in a rather narrow $15 high to low range, silver a 25 cent range, platinum a $15 range, while palladium traded in a $16 range. Gold and silver continue to hover above recent major support levels of $1240 for gold and $18.80 for silver. Platinum seems vulnerable to further price erosion after breaking recent support at $1,400, and palladium is now approaching short-term support at $840.

At the Comex close: December gold slipped $3.20 to $1,245.30; December silver gained 1 cent to $18.85; October platinum edged lower $4.80 to $1,381.00; December palladium fell $11.25 to $848.85 an ounce.




September 9: Gold slips again as dollar strengthens

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold slipped 0.5% to close at a three-month low under $1,249 as continuing dollar strength undercut demand for alternative stores of value. The dollar rose to a 14-month high against the euro on speculation that the ECB will undertake quantitative easing and the Fed will begin to tighten monetary policy sooner than previously thought.

Research from the San Francisco Fed released yesterday concluded that low volatility in financial markets suggests investors are overestimating low long U.S. interest rates will remain near zero. Most Fed watchers expect the first rate increase to come by mid-2015.

However, Morgan's Stanley's top expert in monetary policy, former Fed director Vincent Rheinhart, said yesterday that hikes will be delayed until 2016 to avoid market turmoil. Higher rates make the dollar more attractive, which in turn weighs on gold and other commodities by making them more expensive to holder of other currencies.

The other precious metals tracked lower with gold. Silver slipped 0.2%. Platinum dropped 0.8% to a seven-month low while palladium tumbled 2.9% as traders took profits from its recent run-up to a 13-year high on supply concerns.

At the Comex close: December gold slipped $5.80 to $1,248.50; December silver slid 4 cents to $18.84; October platinum dropped $11.70 to $1,385.80; December palladium tumbled $25.60 to $860.10 an ounce.




September 8: Gold falls 1% on rallying dollar

Source: Dr. Bill Musgrave, American Gold Exchange

Austin -- Gold fell 1%, bouncing off a three-month low near $1,252 as the dollar jumped to a 13-month high ahead of Scotland's referendum on independence from the UK. Reduced tensions in the Ukraine after Friday's ceasefire also cut into the metal's safe-haven appeal, despite reports of sporadic fighting over the weekend.

The euro and British pound tumbled today on growing expectations that Scotland may, indeed, vote to separate from Britain, with recent polls showing a majority in favor of the break for the first time. The uncertainty drove forex traders into dollars, pressuring gold and other commodities denominated in the currency for international trade by making them more expensive to foreign buyers.

The other precious metals were also lower, with silver down 0.7%, platinum 0.8%, and palladium 0.6%. December gold fell $12 to $1,255.30; September silver lost 14 cents to $1,895; October platinum dropped $11.40 to %1,399.60; and December palladium gave up $5.95 to $885.50.




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