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Gold, Silver Weaker on Friday, September 16, amid a Stronger Dollar

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Gold and silver weaker on Friday

After continuing their decline on Thursday, September 15, gold and silver moved lower on Friday, September 16. At 1:45 PM EDT on September 16, the COMEX gold futures contract for December delivery was trading at $1,310.45 per ounce, a drop of ~0.57%. The COMEX silver futures contract for December delivery was trading at ~$18.87 per ounce, a fall of ~0.91%.

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Stronger dollar weighs on gold and silver on September 16

On Friday, September 16, the stronger dollar weighed on the prices of gold and silver. The better-than-expected consumer price index (or CPI) data gave support to the US dollar, helping it touch its highest price levels in more than two weeks.

According to data released by the US Bureau of Labor Statistics, the CPI for August 2016 rose 0.2%. The market was expecting a 0.1% increase in August’s CPI. The stronger dollar kept the pressure on dollar-denominated commodities such as copper, gold, and silver.

Gold started the day on a weaker note and moved much lower as the day progressed. Please read Why Are Copper, Gold, and Silver Weaker Early on September 16? to see how metals performed in Friday’s early hours.

The market is awaiting the two-day Federal Reserve meeting, which is scheduled to start on Tuesday, September 20. Due to the release of US economic data on September 16, the chances of an interest rate hike increased. The respective chances of an interest rate hike in September, November, and December moved from Thursday’s chances of 12%, 21.1%, and 51.2% to 15%, 22%, and 48.1% on Friday, September 16.

At 2:10 PM EDT, precious metal producers Barrick Gold (ABX), Newmont Mining (NEM), Silver Wheaton (SLW), and Royal Gold (RGLD) fell ~3%, ~3.1%, ~2.9%, and ~1.5%, respectively. The SPDR Gold Trust ETF (GLD) fell ~0.49%.

The final article in this series summarizes the performance of companies in the energy, metals, and mining sectors on Friday, September 16.

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