Today’s AM fix was USD 1,217.75, EUR 955.71 and GBP 750.54 per ounce.
Friday’s AM fix was USD 1,222.25, EUR 958.70 and GBP 749.11 per ounce.
Gold fell $3.50 or 0.29% to $1,217.50 per ounce and silver climbed $0.11 or 0.63% to $17.63 per ounce Friday. Gold and silver were both down on the week at 0.01% and 1.51% respectively.
Gold in Singapore was essentially flat, trading around the $1,219/oz level and remained tethered to this level in London trading. Palladium gained about 1% while silver and platinum were largely unchanged.
The dollar hit a four year peak against a basket of currencies this morning and this is pressuring the precious metals.
Gold Down 5.2% In September and Headed For Quarterly Loss Of Over 8%.
September has been a poor month for precious metals. Gold is down 5.2%, despite it being gold’s strongest month from a seasonal perspective. The price fall means that gold is heading for the first quarterly loss this year.
Silver has fallen by a larger amount and is down 9.6%. While platinum is 8.3% lower.
Palladium’s 12.7% drop this month means that it is on track for its worst monthly performance since September 2011. It remains higher for the year and is 12.5% higher than the low in January 2014 at $693/oz.
Demand for physical gold could be affected by the Chinese holiday period that begins this week, MKS note this morning.
“Beginning on Wednesday this week we have Chinese Golden Week commencing, which will keep Chinese markets shut between 1-8 October,” it said. “Given the natural support derived from Chinese physical demand, their absence over this period, combined with another strong payrolls figure expected this Friday, could heap added pressure on the gold. This is a very similar scenario to last year where gold was aggressively sold by speculators during the absence of the Chinese.”
Gold in USD – 5 Years (Thomson Reuters)
Canny buyers in Asia and globally will use further price weakness to dollar cost average into gold.
This article is brought to you courtesy of Goldcore which appeared on ZeroHedge.