Gold and silver stable on September 14
After declining for four consecutive trading days, gold and silver were stable on Wednesday, September 14. At 1:45 PM EDT on September 14, the COMEX gold futures contract for December delivery was trading at $1,326.60 per ounce, a gain of ~0.21%.
The COMEX silver futures contract for December delivery gained ~0.54% and was trading at ~$19.08 per ounce.
Market awaits Federal Reserve meeting
Gold and silver started Wednesday on a stable note and maintained their strength because of a weaker dollar. The weaker dollar supports the prices of dollar-denominated commodities like crude, copper, silver, and gold. Please read Why Is Copper Trading High in the Early Hours on September 14? to see how metals traded in the early hours on Wednesday.
The market is awaiting the two-day Federal Reserve meeting, which is scheduled to start on Tuesday, September 20. In addition to pressure from the dollar, the recent speculation regarding the timing of an interest rate hike by the Fed has been weighing on gold prices.
However, gold regained some strength after comments by Lael Brainard, a member of the Federal Reserve’s Board of Governors, warned against a near-term interest rate hike. According to Brainard, the stronger trend in US consumer spending and inflation must support the US economy before interest rates should be increased.
On Wednesday, September 14, the chances of an interest rate hike in September, November, and December stood at 15%, 22%, and 48.1%, respectively—a noticeable decline from the odds expected at the end of last week.
At 2:00 PM EDT on Wednesday, September 14, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), and Royal Gold (RGLD) fell ~0.81%, ~1.9%, and ~0.58%, respectively. Silver Wheaton (SLW) rose ~0.51%. The SPDR Gold Trust ETF (GLD) gained 0.34%.
The final article in this series explains the performance of companies in the energy, metals, and mining sectors on Wednesday, September 14.