In this Weekly Market Report for Precious Metals we see metal prices decline after the U.S. dollar gets a boost. On Friday, August 26th, Federal Reserve Chair Janet Yellen gave a speech following the Fed’s annual monetary policy conference in Jackson Hole, Wyoming. She described consumer spending as “solid” but noted that U.S. business investment was weak and exports hurt by a strong dollar. Overall her comment came off as somewhat hawkish. Yellen suggested that the economy is moving toward the Fed’s targets and an interest rate increase is again under consideration. Vice Chair Fischer indicated that if non-farm payroll numbers released this week are strong, then September is in play. When he appeared on CNBC he was asked whether a rate hike in September and more than one policy tightening before year-end should be expected, Fischer said Yellen’s comments were “consistent with answering yes” to both questions, though still data-dependent. With this news the U.S. dollar surged and renewed selling pushed gold down to five-week lows. Investors are looking toward the non-farm payroll information coming out on Friday, September 2nd.
Gold started the week at $1342.00 per ounce. On Thursday it was down to $1324.50. Friday saw gold hit the lowest point of the week, it was down to $1317.00. On Monday, August 29th, gold was up again a bit to $1322.60. The coming week will be focused on economic data again. The price of gold in the coming weeks will play closely off of the U.S. dollar. If gold dips below $1315.00 we may see prices weaken to the $1307.00 mark. Overall, markets are still very thin and moves will be exaggerated.
Silver started the week at $18.98 and was down to $18.50 on Thursday. Silver got a small boost on Saturday, ending at $18.67. On Monday silver was down again to $18.41. Silver will continue to follow gold’s pricing against the dollar this week.
Platinum lost some ground this week. It started off at $1108.00 and was down to $1090.00 on Tuesday. By Friday it was down a bit more to $1077. Platinum did not move much overall on Monday, ending the day at $1078.
Palladium began the week at $696 and was down to $685 on Thursday. On Friday it ended up to $690. Unlike the other metals palladium ended up a bit more on Monday to $696.
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