Gold and silver are stable
After losing 1.8% and falling to two-week low levels last week, gold recovered on September 19. It had a stable start to the week. At 2:10 PM EST on September 19, the COMEX gold futures contract for December delivery was trading at $1,317.55 per ounce—a gain of ~0.56%. The COMEX silver contract for December delivery rose ~2.2% to $19.27 per ounce.
Market waits for the Fed’s meeting
The gold market is looking forward to the outcome of from major central banks’ meetings scheduled for this week. Japan’s two-day meeting is scheduled to start on September 20. The policy statement is scheduled to release on September 21. The Fed’s meeting also starts on September 20. The policy statement and FOMC economic projections are scheduled to release at 2:00 PM EST on September 21. The US dollar was weaker on September 19 amid speculations about the possibility of an interest rate hike in this week’s policy meeting.
Gold and silver were supported by the weaker dollar on September 19. The weaker dollar supports the prices of dollar-denominated commodities like copper and gold. Gold and silver started the day on a stable note and maintained their strength throughout the day. Read Copper Is Weaker, Gold and Silver Are Stable on September 19 to learn how metals traded in the early hours. The chances of an interest rate hike in September, November, and December moved from 15%, 22%, and 48.1% on Friday to 12%, 21.1%, and 55% on September 19.
At 2:30 PM EST, precious metal producers Barrick Gold (ABX) fell ~0.4%, while Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) gained ~0.47%, ~1.2%, and ~1.8%, respectively. The SPDR Gold Trust ETF (GLD) gained ~0.25%. In the next part, we’ll discuss how companies in the energy, metals, and mining sector performed on September 19.