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Gold and Silver Stable amid a Weaker Dollar on August 16

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Aug. 16 2016, Published 4:58 p.m. ET

Gold and silver stable on August 16

Gold and silver prices were stable in the early morning hours on Tuesday, August 16, and maintained the same stability throughout the day. At 2:15 PM EDT on August 16, the COMEX gold futures contract for December delivery was trading at $1,355.05 per ounce, a gain of ~0.6%.

The COMEX silver futures contract for September delivery was trading at $19.87 per ounce, a gain of ~0.1%. Please read Copper, Gold, and Silver Are Strong Early on August 16 to see how metals traded in the early morning hours.

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Interest rate hike?

The weaker dollar and the decreased chances of an interest rate hike are supporting gold prices. Generally, the weaker dollar supports the prices of dollar-denominated commodities like gold and silver. The disappointing US inflation data released on August 16 decreased the chances of an interest rate hike in the near term and supported gold prices.

According to the data released by the US Commerce Department, the consumer price index remained unchanged in July. The market was expecting a gain of 0.1%, and this weaker-than-expected data supported gold.

On August 16, the chances of an interest rate in September stood at 9%, whereas the chances of an interest rate hike in December 2016 is ~42%.

At 2:30 PM EDT on Tuesday, August 16, precious metal producers Barrick Gold (ABX) and Newmont Mining (NEM) fell by ~0.6% and ~1.1%, respectively. Silver Wheaton (SLW) and Royal Gold (RGLD) gained ~0.7% and ~0.5%, respectively. The SPDR Gold Trust ETF (GLD) gained ~0.8% on the day.

The final article in this series explains the performance of companies in the metals and mining sector on Tuesday, August 16.

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