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In this Weekly Market Report for Precious Metals we see gold stay more steady than other metals amidst more rate-hike speculation. Over the week, investors speculated that there was about a 25% chance that the Fed would raise rates at their meeting this month. However, on Monday, September 12, that chance dropped down to 15% after a speech by Fed Gov. Lael Brainard. She explained that caution is still needed, especially given the instability in global markets saying, “Foreign consumption and investment are weak, while foreign demand for savings is high, along with an elevated demand for safe assets.” The Federal Reserve will meet next week, on September 20-21 and markets will continue to be susceptible to speculation until the meeting concludes.
Gold began the week at $1330.05 per ounce. Thursday is ended up, at $1343.40 and on Friday it was back down to $1330.85. On Monday gold dropped a bit again, to end at $1324.60. Overall, gold is remaining steady despite the over-reactive markets. The dollar index dropped on Monday due to the dovish comments by Brainard, which is good for gold. While gold may fluctuate this coming week we do not expect it to lose much ground given how unlikely a rate increase is.
Silver started the week at $19.60 and was up by Thursday, ending at $19.93. On Monday silver dropped more significantly to $18.72. The “Fed speak” of recent days is again impacting U.S. and world markets and pressuring silver. While a rate increase next week is unlikely, there is still the chance that it could happen by the end of the year. Comments made during the meeting will give investors indications on the Fed’s vision for the remainder of the year.
Platinum began the week at $1078.00 and was up to $1088.00 on Thursday. Monday caused platinum to lose ground also, it ended down to $1043.00. Platinum is following the other metals as they are influenced by speculation.
Palladium started at $682.00 and was up to $694.00 on Thursday. By the end of Monday platinum was back down to $665.00.
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