Gold eased on Wednesday, September 7
On Tuesday, September 6, gold rose to its highest price levels in a month. However, gold and silver prices eased on Wednesday, September 7. At 2:00 PM EDT on September 7, the COMEX gold futures contract for December delivery was trading at $1,349.85 per ounce, a drop of ~0.29%.
The COMEX silver futures contract for December delivery was trading at ~$19.87 per ounce, a drop of ~1.4%.
Speculations over interest rate hike supporting gold
Speculation over the timing of a potential interest rate hike is driving the price of gold. The weaker-than-expected US non-farm payroll data released on Friday, September 2, decreased the odds of an interest rate hike.
Following this report, the US ISM services PMI that was released on Tuesday, September 6, disappointed the market by posting weaker-than-expected results. This weaker data decreased the expectations of an interest rate hike in the near term.
On Wednesday, September 7, the chances of an interest rate hike in September, November, and December stood at 15%, 20.3%, and 50.7%, respectively.
According to the data released by the Institute of Supply Management, the US ISM non-manufacturing PMI data for August came in at 51.4. This is less than July’s value of 55.5 and the forecast of 55.0, which disappointed the market.
COMEX gold started September 7 with decreased momentum, but it maintained its stability at almost one-month-high price levels. Please read Copper Is Stable, Gold and Silver Are Weaker Early on September 7 to see how metals performed in the early hours on Wednesday, September 7.
At 2:05 PM EDT on September 7, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell by ~2.3%, ~1.1%, ~0.24%, and ~1.8%, respectively. The SPDR Gold Trust ETF (GLD) fell by 0.28%.
The final article in this series explains the performance of companies in the energy, metals, and mining sectors on Wednesday, September 7.