Weekly Market Report for Precious Metals: September 27th – October 3rd


In this Weekly Market Report for Precious Metals we see prices soften at the end of the week. U.S. economic data released on Monday, October 4, 2016, showed that Manufacturing PMI is at 51.5, a three-month low. “U.S. manufacturers signaled another moderate upturn in both production volumes and incoming new work during September, but the latest survey indicated a further loss of growth momentum from July’s recent peak,” Markit said. The ISM Manufacturing index for September came in at 51.5, up from 49.4 in the previous month. Construction spending fell 0.7 percent in August, while analysts expected a 0.2 percent increase. In an unusual turn of events, the dollar rose despite the weaker numbers. Earlier concerns about German Deutsche Bank’s liquidity also were also lessened on Monday. In an attempt to lift oil prices, the Organization of Petroleum Exporting Countries (OPEC) agreed to a production cut at its meeting in Algiers last week. The organization plans to limit daily production to between 32.5 million barrels and 33 million barrels, down from 33.2 million barrels. Changes in Russia are coming soon, as the central bank said Monday that Governor Elvira Nabiullina would be directly responsible for monetary policy fromOctober 17, and First Deputy Governor Dmitry Tulin will become responsible for the banking sector.


Gold began the week at $1335.85 per ounce. On Thursday, gold was down to $1318.10. Gold saw an increase on Friday to $1322.50. Monday saw gold slip down to $1313.30. First support is seen at $1309.20 and then at the September low of $1305.50. China’s markets are closed until October 9 for “Chinese National Days,” a full week of holidaying. The holiday will mean subdued volumes this week. In other gold news, according to sales data, the U.S. Mint saw renewed interest in its gold and silver bullion coins with sales last month hitting their highest level since April. The Mint sold a total of 67,500 ounces in various denominations of American Eagle and Buffalo gold coins last month, an increase of 65% from August.


Silver started the week at $19.42, and was down to $19.01 on Thursday. On Friday silver got a boost up to $19.35. On Monday silver followed trend and dropped to $19.18. Sales data shows that the U.S. Mint sold 1.675 million ounces of silver last month, up nearly 24% from August.


Platinum began the week at $1040.00 and was down to $1021.00 on Thursday. Again following gold’s lead, platinum was down to $1013.00 on Monday.


Palladium started off at $694.00 this week. It was down to $709.00 on Thursday. Palladium was up, ending Friday at $722.00. Breaking with the trend, palladium was up to $725 on Monday.

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